How do I enter an inherited annuity?

An inherited annuity is not taxed when you receive it.  It is taxed when you start receiving distributions.

These distributions are generally recorded on a Form 1099-R.

This is how to post a 1099-R

1. Login to your TurboTax Account 

2. Click "Wages & Income" on the top

3. Scroll down to  "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 

4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"

5. Click "I'll Type it Myself"

6. From here TurboTax will walk you through entering your Form 1099-R

Once you complete the first one you can Add Another 1099-R 

The code(s) in Box 7 of your 1099-R helps identify the type of distribution you received. We use these codes and your answers to some interview questions to determine if your distribution is taxable or subject to an early withdrawal penalty.