Conceptually, when taxpayers receive annuity payments, how do they determine the amount of the payment they must

Question:

Conceptually, when taxpayers receive payments, how do they determine the amount of the payment they must include in gross income?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...