All or some of the amounts you receive could be taxable if you get retirement benefits from annuity or pension payments. They are fully taxable if you have no investment in the contract because you didn’t contribute anything for the pension or annuity, your employer didn’t withhold salary contributions, or if all tax contributions received were tax-free in previous years.
Depending on your contributions, pensions and annuities are either fully or partially taxable. If all contributions were made by an employer before determining your taxable wages or salary, this income is fully taxable.
For further questions about Phoenix personal income tax accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.