Whether alimony (also called spousal support) is taxable or deductible depends on when your divorce or separation agreement was finalized.
Was your agreement finalized on or after 01/01/2019?
If your divorce or separation agreement was executed on or after January 1, 2019, the current rules apply:
Alimony you receive isn’t taxable income
Alimony you pay isn’t tax-deductible
These changes were made under the Tax Cuts and Jobs Act (TCJA).
Was your agreement finalized on or before 12/31/2018?
If your divorce or separation agreement was executed on or before December 31, 2018, the old rules generally apply:
Alimony you receive is taxable income
Alimony you pay may be deductible
Note: There are some exceptions for agreements modified after Dec. 31, 2018.
What if my agreement was modified after 2018?
Some agreements finalized before 12/31/2018 may be treated under the new rules if they were later modified and the modification specifically states that the TCJA rules apply.
Because these situations can vary, it’s important to review the terms of your agreement carefully.
Key takeaway
The tax treatment of alimony depends entirely on the date your agreement was executed (and possibly modified)—not when the payments were made.
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