Hi, thanks for your replies...
The retirement money came from his retirement account through the city he worked for. It was not an IRA, it may have been a 401K. He took the tax penalty when he cashed out the money and then just gave me a check from his personal bank account. I received it in July 2012, it was about 25K, I used some for a down payment on my house, some to pay off my car loan and I saved about 10K.
"It depends on the meaning of the word "from" (see John's question). If it was a settlement from the ex ("I will pay you $25k cash if you leave my retirement alone"), then no.
When a divorce settlement shifts property from one spouse to another, the recipient doesn't pay tax on that transfer."
The situation with the retirement was that the lawyers looked at both our retirment accounts, added them together, and divided them equally...so my part to equal it out was 25K. I am not trying to get out of paying taxes if I do, indeed, owe them...I just don't want to assume I don't need to pay them and find out years later---with penalties that I owe a lot of money!
I didn't receive a 1099-int from the bank the day I cashed those bonds in....I assumed I would get it that day, so maybe that will be mailed to me in the next month or so...not sure.
Thanks again for your help!