Hal_Al
Level 15

Get your taxes done using TurboTax

Q. I was told I didn’t have to pay taxes on it at the time. Is that correct?

A.  Yes.  You do not have to pay tax, at the time you received the money.  But, you must include the income when you file your tax return.

 

There is a small risk that you might have to pay an underpayment penalty if this extra income results in you owing more than $1000 (federal) at tax filing time.