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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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Levi - ok so I am confused with how I should file so I do

Customer Question

Levi - ok so I am confused with how I should file so I do not owe any tax on asset distribution without the courts ordering it, due to our divorce settlement draft is on its way but not in courts. if I file jointly I will have to pay tax return on all
the money he gave me ? or due to me not working at all being a stay at home mom would I not owe anything? head of household scares me, I think I would have to pay tax on all this money going into my account I have no court order saying why I am getting this
income yet. my papers will say asset distribution though . so is jointly the safest? so I owe no taxes on this?
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.
ok so I am confused with how I should file so I do not owe any tax on asset distribution without the courts ordering it, due to our divorce settlement draft is on its way but not in courts. if I file jointly I will have to pay tax return on all the money he gave me ?A. If these are martial assets - and owned jointly or owned by your spouse - transfer of such assets woudl be treated as property settlement - and woudl be neither taxable for you nor deductible for your spouse.That is regardless if you file jointly or separately from your spouse..or due to me not working at all being a stay at home mom would I not owe anything?A.Many married taxpayers choose to file a joint tax return because of certain benefits this filing status allows. Both taxpayers are jointly and individually responsible for the tax and any interest or penalty due on the joint return even if they later divorce. This is true even if a divorce decree states that a former spouse will be responsible for any amounts due on previously filed joint returns. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse.
Expert:  Lev replied 2 years ago.
I think I would have to pay tax on all this money going into my account I have no court order saying why I am getting this income yet. my papers will say asset distribution though . so is jointly the safest?A.According to IRS publication 504A payment to or for a spouse under a divorce or separation instrument is alimony if the spouses do not file a joint return with each other and all the following requirements are met.-- The payment is in cash.-- The instrument does not designate the payment as not alimony.-- The spouses are not members of the same household at the time the payments are made. This requirement applies only if the spouses are legally separated under a decree of divorce or separate maintenance.-- There is no liability to make any payment (in cash or property) after the death of the recipient spouse.-- The payment is not treated as child support.So far - unless ALL these requirements are met - the payment is NOT classified as alimony..Regarding distributions from retirement account that are divided because of divorce.As long as retirement accounts are not divided - and distribution is NOT requested by you - by indeed is requested by your spouse - it would be taxable for your spouse ONLY.However - if you choose to file a joint tax return - BOTH of you would be jointly and individually responsible for the tax.So - if that is your concern - you might want to avoid filing a joint tax return.