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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
Let me know if any clarification needed.
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?
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.
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