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The recipient doesn’t have to pay taxes on the payments, meaning alimony is no longer taxable. If your divorce was finalized before the end of 2018, you may qualify for an alimony tax deduction if:
Under the old, pre-2019 alimony tax rule, filers could deduct alimony payments on their Form 1040, and recipients had to include alimony as income, provided that the payments were made in cash ...
Historically, the alimony payments were always deductible for the payer. But under the Tax Cuts and Jobs Act, the tax treatment of alimony depends on when the alimony agreement was executed.
Rehabilitative alimony: Support given to a lesser-earning spouse for a period of time necessary to acquire work outside the home and become self-sufficient. Permanent alimony: Support paid to the lesser-earning spouse until the death of the payor, the death of the recipient, or the remarriage of the recipient.
The Tax Cuts and Jobs Act made a big impact on filings for tax year 2018. From nearly double the standard deductions to new tax brackets, last year's tax filers had to adjust to changes to their...
Alimony paid (which the recipient must include in gross income), College tuition, fees, and student loan interest (with limitations and exceptions), Jury duty pay remitted to the juror's employer, Domestic production activities deduction, and; Certain other items of limited applicability.
Alimony paid to a former spouse will no longer be deductible by the payer, and alimony payments will no longer be included in the recipient's gross income. This effectively shifts the tax burden of alimony from the recipient to the payer, increases the amount of tax collected on the income transferred as alimony, and simplifies the audit trail ...
However, any divorce or separation agreements entered into prior to Jan. 1, 2019, that have not been modified are typically deductible by the person paying the alimony and count as taxable income ...