Do I pay taxes on a divorce settlement?
Do I pay taxes on a divorce settlement?
If the cash settlement you received from your husband was for equalization of matrimonial property, then it is not considered taxable or tax deductible. If the money was for support, then a lump sum payment is neither taxable or tax deductible.
Is divorce property settlement tax deductible?
No matter what your settlement agreement/divorce decree calls it, you can deduct payments to your ex under four circumstances. Property transfers incident to divorce are not taxable income to the recipient and, therefore, are not tax deductible to the payor.
Can alimony be paid in one lump sum?
Several states allow a spouse to pay the total alimony amount in one lump sum as long as the total sum is equal to the total amount of future monthly payments. There are benefits to receiving a lump sum alimony payment.
Who claims the House on taxes after a divorce?
If the house is owned jointly after a divorce, and both former spouses are still paying the mortgage interest, then the deduction can still be split equally. If the house is in the name of only one ex-spouse, then only that individual has the right to claim the deduction.
