Simple trust for revocable living trust - pass through the anuity income?

It's a complex trust, because you distributed either more or less than just the current year's income.

You've got a trust accounting issue as to whether the annuity distribution is properly attributable to income (income and tax liability pass out to benes) or corpus (taxable on the trust's return, which has more-compressed brackets, but maybe deductions that could offset it above the line). Depending on the terms of the trust, the trustee may have discretion.