Taxable Payments

Payments a woman got for agreeing to be faithful to her boyfriend are taxable. After dating for about a year, a couple pledged their fidelity to each other in writing. The agreement required him to pay her $400,000. Later, he accused her of cheating. They broke up and he sued her. He also filed a 1099 Misc, reporting the payment. A state court found that she defauded him and required her to repay the $400,000.  Still, the Tax Court says she owes tax on the amount.

Back to List

Client Center

- Individual Clients
- Business Clients
- Client Employee

- QuickBooks

Using Your Client Organizer
How to Review My 1040
Using File Exchange

Go Mobile!

...and get what you need, when and where you need it!

Phone: (717) 464-2951 • Fax: (717) 464-2013