According to the Publication Manual of the American Psychological Association (2019, p. 307), Section 9.51 Annotated Bibliographies:
Format annotated bibliographies like an APA paper
Order citations as on an APA paper Reference page: alphabetically with hanging indents
Annotations should appear in a new paragraph the citation, indented 0.5 inches from the left margin
Annotations with multiple paragraphs: indent the first line of the second and any subsequent paragraphs an additional 0.5 in., the same as you would a block quotation with multiple paragraphs.