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fingpilot fingpilot is offline
Used to be Singpilot...
 
Join Date: Oct 2006
Location: Sioux Falls, SD is what the reg says on the bus.
Posts: 1,867
Divorce Tax questions.... no, not for me...

A friend is going thru a divorce. She has hung in there for many years.

Nonetheless, the time has come and her settlement offer is partly funded by her ex's IRA / 401K. The balance will be a check (with money borrowed from his inheirantence). She has not had any income for many years, and they always filed 'married / jointly'; farm losses offset income. Final date is mid-November.

Is settlement taxable? Will state taxes apply? Should her filing status be an issue? What should she expect this year / next year?

I know, she is looking for a tax guy, her attorney won't go there. But I was wondering about the PP brain trust opinion.

TIA.
Old 08-27-2007, 06:53 PM
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