Distributional award


#1

If I were to get signed off on a “distributional award” for back alimony…is it still considered alimony and would I have to pay income tax on it. I understand that alimony is taxable but this distributional award will include back alimony and extra money that is due me from the property settlement once it is settled. Thank you!


#2

Whether it is defined as a lump sum alimony payment or as a distributive award for equitable distribution would determine whether it is taxable. You could also specifically define a portion as taxable and the other portion as non-taxable.