1600.2.7 Annuities

Count payments from an annuity as unearned income. An annuity is purchased from an insurance company or by an employer as consideration for services provided. It may be paid yearly or at other specified intervals.

Note : Annuities should be averaged over the period of time they are intended to cover. Example: annuities that are paid annually should be averaged over 12-months. See Determining Income and Deductions .