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lump divorce settlement and student loans. How do I factor?

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Gotalife

Member
What is the name of your state? Tn

I was divorced in June of 2002 and recieved a lump settlement in lieu of alimony, or to buy out my half of the house, whichever works better for tax purposes. The amount was about $8500.
Do I just claim this under income?

I also moved with my four children and went back to college. I have received student loans which I used for rent. How does this figure? If I understand correctly, the grants that I have received are deductable up to the amount used for tuition, and books.
 


abezon

Senior Member
1. No. Property transfers pursuant to divorce are not taxable.

2. Loans are not income. You might want to include your grants in income & take an education tax credit. Taxable scholarships are included in line 7 with wages & can affect the amount of EIC you get.
 

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