Legal Question in Family Law in Florida
taxes on maintenace divorce settlement
I pay taxes on maintenance I receive monthly in a divorce settlement in Wisconsin. If I move to Florida where wages are not taxed, will I have to pay taxes on the monthly maintenace I receive?
2 Answers from Attorneys
Re: taxes on maintenace divorce settlement
Since Spousal Maintenance is income, you would pay whatever income taxes would apply in the state where it is received. You may avoid state income tax, but federal taxes would still apply.
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Re: taxes on maintenace divorce settlement
If by maintenance you mean alimony, then yes and no. Alimony is taxed by the IRS to the receiving spouse. The IRS is a federal agency that collects the same way no matter which state you live in. However, as you said, there is no state income tax in Florida and therefore, no state income tax on alimony.