If my ex cashed in her QDRO would I be able to count that as her earned income for the year if she claims it on her taxes.? We calculate child support according to earned income yearly-so I was wondering if that would be counted along with her other income she received last year.
A QDRO can be used to change the payee of a retirement plan. Retirement plans can be vastly different and taxed very differently. Benefits received through a QDRO are taxed like those benefit would have been received not through the QDRO. Many family law attorneys outsource QDRO work because it is relatively complex. You are going to want to talk with a QDRO attorney or tax accountant with this question. You will not get a thorough answer to this question on Avvo.
As the family law crowd hasn't jumped in, I will. Hopefully they'll clarify, as this will be rough.
I'm assuming the QDRO is for a retirement account. For most purposes, that is not "earned" income, but income from an asset.
However, is this even a Nevada decree? The annual recalculation would be unusual in this state.
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