How do I know which method I used to figure out how much of my annuity is taxable? Simplified method? Or general rule?

The method you use to determine the taxable portion of your annuity depends on the type of retirement plan it comes from:

1. Simplified Method: This is typically used for annuities from qualified retirement plans, such as a 401(k) or a tax-sheltered annuity. You calculate the tax-free portion of each payment using a worksheet provided in the IRS instructions for Form 1040 or Publication 575.
2. General Rule: This applies to annuities from non-qualified retirement plans. It involves using IRS life expectancy tables to determine the taxable and tax-free portions of your payments.

TurboTax treats both annuities the same way, so it'd be safe to use the simplified method.

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