Possible tax credits from Court Settlement? I am a retired military member who was divorced while i was still active duty. Due to me being active duty, she didn't start receiving portions of my retirement pay until I actually retired. Due to circumstances, she was not able to claim/process for almost 10 years after I retired.
Bottom line is; We went to court and she was due/awarded almost $85,000 which I paid cash (bank transfer).
My question is, since I have already paid income taxes on the cash as it was my income, is there anyway to receive a tax credit for that amount, or is there any other way to claim/recoup taxes awarded to her. She is walking out of this court settlement tax free. |