do i pay taxs on my settlment of 60,000.00 i was awarded

Taxation of the proceeds received subject to divorce differs based on the nature of payment. Property settlements subject to divorce are not taxable. Alimony (spousal support) payments are taxable to the receiving spouse and deductible to the paying spouse. Amounts paid under divorce or separate maintenance decrees or written separation agreements entered into between you and your spouse or former spouse will be considered alimony for Federal tax purposes if:

1. You and your spouse or former spouse do not file a joint return with each other,
2. You pay in cash (including checks or money orders),
3. The decree of divorce or separate maintenance does not say that the payment is not alimony,
4. If legally separated under a decree of divorce or separate maintenance, you and your former spouse are not members of the same household when you make the payment,
5. You have no liability to make the payment (in cash or property) after the death of your spouse or former spouse; and
6. Your payment is not treated as child support.

Some is probably non-taxable, but the periodic payment may be taxable. You should take your dissolution judgment to a CPA (not just a "tax preparer") and review it to figure out your tax treatment of this money.

The portion that you received as a property settlement in your divorce is not taxable. Any portion that you received as child support is not taxable. Alimony can go either way. It depends on what you agreed to with your ex-spouse. You need to go to the dissolution documents to determine this.

Any individual seeking legal advice for their own situation should retain their own legal counsel as this response provides information that is general in nature and not specific to any person's unique situation. Circular 230 Disclaimer - Advice given in this response cannot be used to eliminate penalties with the IRS or any other governmental agency.