Buy out settlement from alimony. How much money can he pay me before I have to pay taxes on it?

Alimony is taxable, if that is what the 'buyout' will describe it as.. Make sure any modification is approved by the Court. There is a way to determine the 'Present Value of an Annuity' to ascertain if it is a fair settlement. A HP12c calculator would work or you can use online calculators. If you are not mathematically inclined and depending on the amount of money involved, I suggest you have a professional do the calculation.

Spousal support is typically taxable to the recipient. However you can add language that would possibly avoid having to pay taxes on the lump sum.

A good family law attorney will advise you about how this buy out should be structured to avoid taxes. Good luck.

Monthly spousal support payments are taxable to you. A lump sum buyout should not be taxable to you.

Typically spousal support is taxable to the recipient. It is possible to add language that it will not be taxable or deductible. So, the answer is that if you are negotiating a buy-out, negotiate this too. t

It will likely be all included or all excluded as income. The tax code is very specific on what constitutes alimony that is included as income. The language in the agreement can make all the difference. You need an attorney familiar with the tax code to review the agreement. The biggest issue is often whether your ex plans on taking the payment as an expense on his tax return. If he takes the deduction for the payment, then it will be income to you. If not, then it is pretty simple to structure it so it is not income to you.