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Posts from the ‘Tax Implications’ Category

If I receive a large payment of support arrears do I need to pay taxes?

Maybe, if the arrears are in regards to child support then it is never deductible by the payor. When receiving lump sum spousal support which represents an arrears of periodic payments you sometimes will need to pay taxes and this will depend on the judge. In situations in which a settlement payment has been made instead of the full amount, it is less likely that you will need to pay tax (more likely it will not be tax deductible to the payor).

However, another mechanism called income averaging may be available... MORE »