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Q:
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What is the treatment for a divorce or separation agreement executed on or before Dec. 31, 2018?
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A:
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Alimony or separation payments paid to a spouse or former spouse under a divorce or separation agreement, such as a divorce decree, a separate maintenance decree, or a written separation agreement, may be alimony for federal tax purposes. Alimony or separation payments are deductible if the taxpayer is the payer spouse. Receiving spouses must include the alimony or separation payments in their income.
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Q:
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What is the treatment for a divorce or separation agreement executed after Dec. 31, 2018?
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A:
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Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018.
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Q:
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I got a divorce on or before Dec. 31, 2018 but modified the agreement after Dec. 31, 2018. Can I deduct the alimony payment on my tax return?
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A:
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You cannot take the deduction if the modification meets following requirements:
changes the terms of the alimony or separate maintenance payments; and
states that the alimony or separate maintenance payments are not deductible by the payer spouse or includable in the income of the receiving spouse.
On the other hand, the alimony payments are deductible from the income of the payer spouse and includable in the income of the receiving spouse, if made under a divorce or separation agreement executed on or before Dec. 31, 2018, even if the agreement was modified after December 31, 2018, so long as the modification is not one described in the preceding paragraph.
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Q:
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Is any portion of the alimony nontaxable?
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A:
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If any portion of the payment is fixed by the decree or agreement as being for the support of minor children (or is contingent on the child’s status, such as reaching a certain age), such portion is non-taxable for the spouse receiving payment and not deductible by the spouse making payment (even a divorce or separation agreement executed on or before Dec 31, 2018).
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FAQ
