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May 11, 2024
Question

Divorce lump sum payout

  • May 11, 2024
  • 1 reply
  • 0 views

Im receiving a lump sum payout from divorce, not designated as spousal support or alimony; just a lump sum payment to settle. What forms do I need to claim on my taxes? 

1 reply

Employee
May 11, 2024

Division of assets from a divorce settlement is not taxed unless it comes from a pretax retirement account and was not rolled into a similar asset. 

May 11, 2024

I understand. But don’t I still need to report that to the IRS? Whether it’s taxed or untaxed? I’ve received lawsuit settlements that were untaxed and required a 1099.

Employee
May 11, 2024

I assume you received no such form. If you did, post back.