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Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 5302
Experience:  Former IRS Revenue Agent
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The State of Illinois reported to the IRS I got interest on

Customer Question

The State of Illinois reported to the IRS I got interest on back child support should I have to pay taxes on this
JA: Which tax year is this for?
Customer: 2017
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Customer: Im unemployed at the moment
Submitted: 18 days ago.
Category: Tax
Expert:  Lev replied 18 days ago.

The State of Illinois reported to the IRS I got interest on back child support should I have to pay taxes on this

Yes - interest is considered taxable income.

That is regardless of the reason why interest is paid.

On your tax return - form 1040 - you report interest income on line 2a

https://www.irs.gov/pub/irs-pdf/f1040.pdf

Let me know if any clarification needed.

 

Customer: replied 18 days ago.
But A Judge ordered it court and I never got the extra interest they state I did he stopped paying when he met the amount the Judge ordered.
Customer: replied 18 days ago.
I am unemployed at the moment can't afford that
Customer: replied 18 days ago.
Plus I never got anything from child support stating i had to claim how was I to know
Customer: replied 18 days ago.
Yes never got form from child support even to report it! Plus he didn't pay more than the judge ordered
Expert:  Dr. Fiona Chen replied 17 days ago.

Dear Customer,

Even if you got interest, the amount could not have been high.

Have you received a notice from the IRS saying that you have unreported income and need to pay more tax?

Who has given you a notice? IRS or State?

Regards,

Fiona

Customer: replied 17 days ago.
Both just called chip support and asked why I didn't get 1099 they said they sent it ( bull) they are sending another guess I have to do an amended tax return.
Customer: replied 17 days ago.
Child not chip
Expert:  Dr. Fiona Chen replied 17 days ago.

Dear Customer,

The amount of interest usually is very low. Wait until you get this Form 1099 and see whether it will make a difference or not. It may not even make a difference on your tax return.

If you are examined by the IRS which is how you realized you owe tax, you may not need to amend tax return. You can just agree with the IRS for proposed adjustment tax amount.

I just cannot imagine this would be a huge tax issue.

Please let me know if you need a follow-up to my last answer or if the response completed your question.

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Regards,

Fiona

 

Expert:  Dr. Fiona Chen replied 9 days ago.

Dear Customer,

Please rate my answer by clicking on the five stars on your screen.

There is no additional charge to you for providing the rating. This is the only way I will get paid by JustAnswer. A five-star rating would be appreciated.

Thank you.

Regards,

Fiona