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Retirement tax questions
Child support itself is not considered income and is not taxed. But if the recipient deposited the money into a taxable (non-retirement) account (i.e. a bank or brokerage account), and earned interest or dividend income, then those amounts would be taxable in the year earned.
So the initial lump sum is not taxable income, but any subsequent taxable income earned from it is reportable.
‎June 5, 2019
11:03 AM