2007-03-01 08:04:31 · 4 answers · asked by Callie 1 in Business & Finance ➔ Taxes ➔ United States
If this was a division of the marital estate, there are no tax consequences for either party in the vast majority of cases.
If any portion of a cash settlement amount was earmarked as alimony or spousal support, it is deductible by the payer and is taxable to the recipient.
See IRS Pub 504 for further details. http://www.irs.gov/publications/p504/ar02.html#d0e2269
2007-03-01 08:20:27 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You should ask your divorce attorney. Some of the funds received as a result of a divorce may be taxable. Much of it is not. Without knowing the nature of the settlement, an accurate answer is not possible. Your attorney should have plenty of experience with this issue. At the very least, they should know a good tax attorney.
2007-03-01 18:30:51 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
If it is considered spousal income, maybe - check with the court/settlement agreement.
2007-03-01 16:10:05 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Yes, but it would affect your refund...
2007-03-01 16:30:02 · answer #4 · answered by Zanie Y 2 · 0⤊ 2⤋