Whether alimony is taxable depends on when the divorce or separation agreement was finalized:
Before January 1, 2019:
-
Alimony is taxable to the recipient.
-
Deductible for the payer.
This applies to:
-
Divorce or separation agreements executed before Jan 1, 2019, and not modified after that date.
On or After January 1, 2019:
-
Alimony is NOT taxable to the recipient.
-
Not deductible by the payer.
This change was made under the Tax Cuts and Jobs Act of 2017 (TCJA).
Summary Table
| Agreement Date | Recipient Pays Tax? | Payer Can Deduct? |
|---|---|---|
| Before Jan 1, 2019 | Yes | Yes |
| On or After Jan 1, 2019 | No | No |
