Money in annuities grow tax-deferred, which means you will not have to file any 1099-INT for interest earned or 1099-D for dividends earned or any capital appreciation or gains, but you will be paying ordinary income taxes on any gains when taken out. Keep in mind that in qualified, or retirement accounts, you do not get any additional tax advantages with annuities as they already grow tax-deferred. Make sure to speak with your advisor if you have large equity portfolios in individual stocks as the taxes on the gains are taxed at the current 15% LT capital gains rate where annuities can be taxed at the current ordinary income tax rate.
Money in an annuity grows tax-deferred, meaning you will not pay income taxes on the gains until the money is withdrawn. This translates into interest earned in three ways: interest on principle, interest on interest, and interest on the money you would have paid in taxes had the money been placed into a savings account, CD, etc.