Following are some of the places where you can use annotations.
a. Annotations can be used by compiler to detect errors and suppress warnings
b. Software tools can use annotations to generate code, xml files, documentation etc., For example, Javadoc use annotations while generating java documentation for your class.
c. Runtime processing of the application can be possible via annotations.
d. You can use annotations to describe the constraints (Ex: @Null, @NotNull, @Max, @Min, @Email).
e. Annotations can be used to describe type of an element. Ex: @Entity, @Repository, @Service, @Controller, @RestController, @Resource etc.,
f. Annotation can be used to specify the behaviour. Ex: @Transactional, @Stateful
g. Annotation are used to specify how to process an element. Ex: @Column, @Embeddable, @EmbeddedId
h. Test frameworks like junit and testing use annotations to define test cases (@Test), define test suites (@Suite) etc.,
i. AOP (Aspect Oriented programming) use annotations (@Before, @After, @Around etc.,)
j. ORM tools like Hibernate, Eclipselink use annotations
You can refer this link for more details on annotations.
You can refer this link to see how annotations are used to build simple test suite.