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Taxes were taken out of the QDRO before they paid out. Do I have to pay additional taxes on the remainder of the money?

Hutto, TX |

I recieved 30k from my ex's retirement as part of a QDRO. Before I recieved the payout they took 6700.00 for taxes, Do I have to pay taxes on the remaining amount?

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Filed under: Tax law
Attorney answers 2

Posted

This is a withholding amount. You need to file your taxes, include this income, and this withholding to determine if you owe any additional taxes. It is like withholding on a paycheck -- it is just an estimated amount.

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.

Posted

It sounds like they are taking the taxes out now. They are not going to tax the same amount twice if that is what you are asking.

Christopher Larson
Insight Law
www.insightlawfirm.com

Asker

Posted

I was under the impression that since this was part of our divorce settlement it wasn't considered income and I wouldn't have to pay taxes on it. But it sounds like that's not the case?

Christopher Michael Larson

Christopher Michael Larson

Posted

Not true. That money was never taxed when it went in. It is both of your property, and neither of you paid taxes on it. That is why.

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