Alimony, also known as spousal support, is a payment made to a former spouse following a divorce or legal separation. Whether alimony is taxable depends on when the divorce or separation agreement was executed and any subsequent modifications. Understanding the IRS rules regarding alimony can help you accurately report income or deductions on your tax return.
Alimony refers to payments made by one spouse to another under a divorce or separation agreement. These payments are typically intended to provide financial support to the recipient spouse. To qualify as alimony for tax purposes, payments must meet specific criteria set by the IRS.
The tax treatment of alimony depends on the date the divorce or separation agreement was finalized:
For payments to be considered alimony under pre-2019 agreements, they must meet the following criteria:
Certain payments are not considered alimony and are not taxable or deductible, including:
If your divorce agreement qualifies for pre-2019 alimony tax rules:
For post-2018 agreements, no reporting of alimony is required since it is neither taxable nor deductible.
If the alimony agreement is modified after December 31, 2018, and the modification explicitly states that the new rules apply, the updated agreement follows the post-2018 tax treatment (non-taxable and non-deductible).
Alimony is generally considered taxable income for the recipient and deductible for the payer, according to the tax laws in effect prior to the Tax Cuts and Jobs Act (TCJA) of 2017. However, for divorces finalized after December 31, 2018, alimony payments are no longer deductible by the payer and are not taxable to the recipient. It's important to review the specific terms of the divorce agreement and consult with a tax professional to understand how these rules apply to individual situations.
Yes, alimony received is considered taxable income for the recipient under the tax laws that applied to divorce agreements finalized before 2019. However, for divorces finalized after December 31, 2018, alimony is not taxable for the recipient nor deductible for the payer.
Yes, alimony payments are generally considered taxable income for the recipient and deductible for the payer if the divorce or separation agreement was finalized before January 1, 2019. For agreements made after that date, alimony is no longer deductible by the payer or taxable to the recipient.
Alimony received by the recipient is generally considered taxable income and must be reported on their tax return. However, for the payer, alimony payments are typically tax-deductible, subject to specific conditions.
Alimony received is generally considered taxable income for the recipient. This means that the recipient must report it on their tax return and pay taxes on it.
