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.
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.
I assume you received no such form. If you did, post back.
I had received a 1099 for a lawsuit damages payout and reported to IRS. This is why I am confused. This is not a division of assets. This is a settlement for damages. Basically his dad is making the settlement payment from his account on behalf of my ex husband. The wire transfer didn’t even come from my ex. I’m just trying to protect myself.