During our divorce proceedings my ex husband received a workers comp settlement. As part of our divorce I received part of this. Do I need to claim my portion of this money on my income taxes?
2007-02-27 21:46:23 · 3 answers · asked by quint2 1 in Business & Finance ➔ Taxes ➔ United States
This money designated as alimony or child support. I do not receive alimony. I am supposed to receive child support but he is behind.
2007-02-27 22:02:05 · update #1
Sorry typo in paragraph before. Money was NOT alimony or child support.
2007-02-27 22:03:07 · update #2
That divorce settlement is not taxable if it is not characterized as alimony or spousal support. It is simply a division of the marital estate and has no tax consequences for either of you.
Note to tma: Division of community property is not taxable!
2007-02-27 22:30:41 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The source of the money is not relevant to your taxes. You received part of the marital assets. This is not income and is not reported on your tax return.
2007-02-28 09:23:04 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
If this is considered alimony, then you would report this income on your tax return. If its considered child support, you would not have to report this.
Depending what state you live in, this may be considered community property and may be taxable. Read Publication 555
http://www.irs.gov/publications/index.html
2007-02-28 05:58:50 · answer #3 · answered by tma 6 · 0⤊ 2⤋