A taxpayer's annuity comes from a nonqualified retirement plan. Does Drake calculate the taxable amount?
Generally, for a nonqualified plan, you will have to calculate the taxable amount yourself using the General Rule rather than the Simplified Method.
The General Rule is described in Pub. 939, General Rule for Pensions and Annuities. Drake does not perform calculations for the General Rule. You must determine and enter the total and taxable portion of the taxpayer's pension or annuity on 1040 lines 16a and 16b.
The Simplified Method, used for most qualified plans, is available in Drake on the Special Tax Treatments tab of screen 1099 - 1099-R Retirement, which produces the worksheet WK_SGR (WK_SGR__ in Drake15 and prior). Pub. 575, Pension and Annuity Income describes the Simplified Method and includes the worksheet at the end of the publication. Drake performs Simplified Method calculations but correct use requires your familiarity with Pub. 575.
A brief description of General Rule and the Simplified Method appears in Topic 411 - Pensions – the General Rule and the Simplified Method. See Pub. 939 and Pub. 575 for details.