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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am in Michigan. Prior to my 2011 divorce, my then wife filed

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I am in Michigan. Prior to my 2011 divorce, my then wife filed a pain and suffering lawsuit. In the divorce settlement, I was given a percentage of any potential award.
Post divorce, she has settled out of court. Is the money I recieve taxable as income ?
I know her portion is not.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question. If it's not taxable to her, it's not taxable to you, either. If you were married the entire amount would be not taxable. You getting the funds is just a matter of you getting what you would have if you were married This is still a pain and suffering award.

Pain and suffering awards are never taxable. So, this won't be taxable to you either.

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