topic Re: Divorce Assets in Get your taxes done using TurboTax

Divorce Assets

fasteddie577 — Sat, 14 Mar 2020 02:23:57 GMT

My sister got divorced in 2019. Does she have to report the assets or cash she received from her divorce?No retirement accounts were involved. Thank you.

State of residence: Texas.

Re: Divorce Assets

Opus 17 — Sat, 14 Mar 2020 03:16:09 GMT

Generally speaking, cash and property divided in a divorce is not taxable income or tax deductible to either party. However, if she received certain tax privileged assets, such as a distribution from the spouse’s 401K through a qualified domestic relations order (QDR0), she has a limited number of options of what to do with that money, some of which involve paying tax. If she received a (QDR0) she would also have received a 1099 form from the trustee.

Re: Divorce Assets

MaryK4 — Sat, 14 Mar 2020 02:38:09 GMT

No, property settlements from a divorce are NOT taxable income.

Re: Divorce Assets

fasteddie577 — Sat, 14 Mar 2020 02:40:24 GMT

Thank you very much.