Are Alimony Payments Tax-Deductible? + FAQs

It depends. Under current federal law (post-2018) alimony is not deductible by the paying spouse.

Older divorce agreements (finalized before 2019) followed different rules, so always check the date of your divorce decree.

85% of divorcing couples report confusion over alimony tax changes, which can cost or save them thousands in taxes each year. In this article you’ll learn:

• 💰 Federal vs. State rules: How the Tax Cuts and Jobs Act reshaped alimony deductions and how some states still treat payments differently.

• ⚖️ Old vs. New Law: Why alimony was deductible before 2019, what changed with the TCJA, and who it affects.

• 📊 Real-life Scenarios: Walk through example cases (with handy tables) showing typical outcomes under different agreements.

• 🔍 Support vs. Child Support: Key differences between spousal support, child support, and property settlements in tax law.

• 🚨 Tax Filing Pitfalls: Top mistakes to avoid on your tax return – from mislabeling payments to ignoring state laws – and tips to get it right.

Federal Tax Rules for Alimony: Before and After 2019

The Tax Cuts and Jobs Act (TCJA) of 2017 completely changed how alimony is taxed at the federal level. Before 2019, the U.S. tax code required the paying spouse to deduct alimony payments from their income, while the receiving spouse reported that money as taxable income.

The idea was that higher-earning spouses (usually the payers) would shift money to lower-earning exes, saving tax overall: the payer had a write-off and the recipient paid tax on the support. Under the old law, strict IRS conditions had to be met for a payment to qualify as deductible alimony (for example, it must be paid in cash, specified in a divorce decree, not labeled as child support, and end on the ex’s death or remarriage).

Under current law (post-2018): Any divorce or separation agreement signed on or after January 1, 2019 is governed by the TCJA rule change. This means:

• Payers cannot deduct alimony on their federal tax return.

• Recipients do not include alimony in their income.

In other words, the tax break is gone. If you divorced in 2020, the $10,000 you pay in annual alimony won’t lower your taxable income at all. Likewise, the ex collecting the $10,000 gets it tax-free. On your federal Form 1040, there’s simply no box for alimony deduction (or income) anymore for post-2018 arrangements. In practice, newer tax forms reflect this: you won’t see any “Alimony Paid” or “Alimony Received” line for these agreements. Simply omit any mention of alimony payments from both spouses’ 1040 forms under the new rules.

Key points under federal law:

• Pre-2019 Agreements: If your divorce was final by Dec 31, 2018, the old rules still apply. The payer deducts the payments and the recipient includes them in income.

• Post-2018 Agreements: Any agreement executed on or after Jan 1, 2019 follows the new law: no deduction for the payer and no taxable income for the recipient.

• Modifications: Changing a pre-2019 agreement after 2018 triggers the new rule only if the modification explicitly says so. In practice, a 2010 divorce decree left unchanged still uses old rules; a 2022 modification must clearly address tax treatment or default to the new law.

• Tax Returns: Under the old system, payers listed alimony on Form 1040 (Schedule 1, “Alimony Paid”) and recipients on Line 2a (“Alimony Received”). Under current law, alimony simply doesn’t appear on the Form 1040 at all for post-2018 deals.

• IRS Guidance: The IRS enforces these rules via the Internal Revenue Code (IRC). Sections 71 and 215 used to cover alimony taxation. Since 2019, the code basically says alimony payments from qualifying post-TCJA agreements are excluded from taxation for both parties.

In practice, this means a paying spouse in 2023 treats an $8,000 alimony payment exactly like any personal expense on federal taxes: no deduction. The recipient just reports it as a non-event. Many divorcing couples actually negotiate higher support to offset the loss of the deduction, since the payer now has to cover the full cost with after-tax dollars.

Historical Alimony Concepts

Under the old law, alimony payments that qualified for deduction (and income inclusion) had to meet several IRS tests. For example, the payments had to be made in cash to the ex-spouse, clearly designated as spousal support in the divorce decree (not a gift, child support, or property settlement), and they had to end if the recipient remarried or died. There was also an alimony recapture rule: if payments dropped too sharply within the first three years, some of the earlier deduction could be clawed back as income on the tax return. That rule still applies to older divorces.

Qualified Domestic Relations Orders (QDROs): These often arise in divorce to split retirement accounts. It’s important to note: QDRO distributions are not alimony. They are retirement plan transfers that go directly to an ex-spouse’s retirement account. The receiving ex-spouse pays tax on the distribution when it comes out as pension or IRA income, but the paying spouse gets no alimony deduction. In other words, if your support arrangement involves a QDRO, treat that separately from the cash alimony rules.

State-Level Alimony Tax Treatment

Not all states mirror the federal change. Some have decoupled from the TCJA on alimony, creating a patchwork of rules. Consider a few examples:

• California: Did not adopt the federal change. Even for divorces after 2018, California still treats alimony like it did pre-TCJA. If Carla pays $8,000 to Dan as alimony, she can deduct that amount on her California return, and Dan must report $8,000 as taxable income on his California return.

• New York: Follows federal law for divorces after 2018. For a 2021 divorce in NY, alimony is not deductible (and not taxable) in New York, matching the federal treatment.

• Massachusetts: Mirrors the federal rule for post-2018 agreements. No deduction on state returns; recipients owe no income tax on support they receive.

• New Jersey: Conformed to the federal law change; post-2018 alimony is not deductible on state returns.

• Texas, Florida, Washington: These states have no personal income tax. Alimony isn’t taxed by the state, but there’s also no deduction (since there’s no taxable income to deduct from).

• Other States: Some states like Arizona and Wisconsin (as of 2025) allow payers to continue deducting alimony on state returns for agreements dated after 2018. Others like Minnesota and Illinois mirror the federal change. Colorado debated it and ended up following the federal rules. The landscape keeps changing as state legislatures consider this issue each year.

In summary: State law can differ widely. You might lose a federal deduction but still get one on your state return (as in California), or vice versa. Always check your state tax code or consult a state tax professional. For example, a California payer might save state taxes on alimony that a New Jersey payer cannot. Be sure to adapt your state filing accordingly, since missing a state deduction or income inclusion can mean unexpectedly higher tax bills.

Alimony vs. Child Support vs. Other Payments

It’s crucial to know which payments are alimony (spousal support) and which are not. Here’s how they differ in tax terms:

• Alimony (Spousal Support): Payments specifically for a former spouse under a divorce or separation agreement. Under pre-2019 law, the payer could deduct this and the recipient had to report it. Under post-2018 law, neither side reports it on federal taxes.

• Child Support: Payments intended for children’s care. By law, child support is never deductible by the payer and never taxable to the recipient. Even if your divorce decree labels it “support,” if it’s for children, it has no tax effect on either parent.

• Property Settlements: Transfers of money or property (like paying off a house or giving a car to an ex). These are not alimony. They’re not deductible by the payer and not taxable to the recipient. A lump-sum payout instead of periodic support is treated as dividing assets, not as alimony.

• Reimbursements/Gifts: If you pay expenses for your ex (e.g. a mortgage or insurance premium), that typically does not count as deductible alimony either. It’s usually seen as additional property transfer or gift, and the IRS generally disallows a deduction for that.

Table: At the federal level (post-2018), only payments meeting the strict definition of alimony (in a court-ordered agreement) ever affected taxes. Under current law, none of these payments affect income.

For example, paying $500 to your ex for your child’s school fees is child support, not deductible or taxable. Paying $500 because your ex put the house in your name is a property settlement, not deductible. Only clear spousal support payments (per IRS rules, and only under old law) qualified for a tax change. Remember: true alimony usually stops if the ex-spouse remarries or dies, another requirement for the old deduction.

Common Mistakes to Avoid

Even small errors can lead to big tax headaches with alimony. Watch out for these pitfalls:

• ⚠️ Ignoring Expert Advice: Relying on generic divorce papers or outdated tax software can lead to mistakes. Lawyers and CPAs need to coordinate under the new tax law. Skipping professional guidance may result in wrongly claimed deductions or IRS penalties.

• ⚠️ Date Confusion: Assuming all alimony is non-deductible or still deductible. Always check when your divorce was final. Any agreement signed after Dec. 31, 2018 is subject to the new rule (no deduction). Agreements before that date use the old rule.

• ⚠️ Child Support Mix-Up: Claiming child support as alimony. Remember, child support is not deductible for the payer and not taxable for the recipient. Do not report child support on lines meant for alimony.

• ⚠️ Modifying Agreements: Changing a support order after 2018 without specifying the tax treatment. If you reduce or increase alimony payments via a 2020 court order, include language saying whether you’re keeping old or new tax rules. Without it, the IRS may default to the new law.

• ⚠️ State vs. Federal Errors: Filing a state tax return that assumes the federal result. For example, dropping a deduction federally but still taking it on a state return (if allowed) can cause discrepancies. Or not reporting alimony income on a state return when required. Verify your state’s rules.

• ⚠️ Reporting Flaws: Using the wrong tax form lines. Pre-2019 payers sometimes forgot to enter “Alimony Paid” on Schedule 1, or recipients failed to include “Alimony Received” on Form 1040. Post-2018 payers might incorrectly try to claim a deduction they no longer have, or recipients might mistakenly report it. Double-check the correct form entries.

• ⚠️ Lump-Sum Trap: Thinking a one-time payment is deductible. It’s not. A single cash settlement or asset transfer to an ex is viewed as property division, not alimony. No federal deduction applies.

• ⚠️ Recapture Overlook: If you divorced before 2019, be aware of the alimony recapture rules. For instance, slashing payments too quickly (over 15% drop from Year 2 to Year 3) can force you to include some previously deducted amounts back into income. Many taxpayers forget to calculate this recapture on their Form 1040.

• ⚠️ Joint Filing: You can’t deduct alimony if you file a joint return with your ex for that year. Only unmarried or legally separated taxpayers could take the deduction.

• ⚠️ Missing Court Fees: Court-ordered attorney fees or legal costs paid on behalf of an ex are not deductible alimony (per court rulings). Don’t claim these as support payments either.

• ⚠️ Invalid Agreement: Support payments must be ordered by a court or written decree. Informal or verbal support promises aren’t deductible as alimony, even under the old law.

• ⚠️ DIY Tax Software Errors: Some popular tax programs may default to old settings if you enter the wrong divorce date. Always enter the effective date of your divorce agreement. If in doubt, consult a pro.

Real-Life Alimony Tax Scenarios

Let’s look at three common scenarios with actual numbers to illustrate the tax effects of alimony:

Scenario 1: Pre-2018 Divorce (Old Law)

Background: John and Mary divorced in 2015. John (the higher earner) pays Mary $12,000 annually in alimony.

Outcome: John claims the $12,000 deduction on Schedule 1 of Form 1040, and Mary includes it as income on her Form 1040 (Line 2a). For example, if John were in a 24% tax bracket, he would save about $2,880 in federal tax, while Mary pays tax on the full $12,000 at her rate.

Scenario 2: Post-2018 Divorce (No Deduction)

Background: Alice and Bob divorced in 2020. Bob pays Alice $10,000 annually in alimony.

Outcome: Under current law, Bob pays the $10,000 from after-tax income. On their federal 1040 forms, Bob leaves out the payment, and Alice reports no income. Both spouses act as if the alimony had no effect on their federal taxes (unlike the old rules).

Scenario 3: State Tax Difference

Background: Carla and Dan divorced in 2021 in California. Carla pays Dan $8,000 annually in alimony.

Outcome: Federally, this is just like Scenario 2 (no deduction, no income). California, however, did not adopt the change. Carla still gets a state tax deduction and Dan pays state tax on it. This mismatch highlights why you must consider state tax filings: you could owe state tax even if the IRS ignores the payment.

Pros and Cons of Alimony Deductibility

Table: Under pre-2019 law, paying alimony reduced taxable income for the payer. After 2018, payers get no such break, which can raise their overall tax cost.

Notable Court Rulings

Several tax cases have clarified what counts as alimony:

• Johnson v. Commissioner (11th Cir.): Ruled that payments of legal fees by one ex-spouse to another were not deductible as alimony, because the payments weren’t made “to” the ex-spouse as cash support.

• Martino v. Commissioner (Tax Court): Held that a bonus paid to an ex-spouse was not deductible spousal support because it wasn’t explicitly a fixed payment per the divorce decree. The ruling underscored that only payments clearly specified in the decree count.

• Shover v. Commissioner (Tax Court, 2023): Addressed a 2017 divorce modified in 2022. The court found the 2022 modification triggered TCJA rules (no deduction) even though the original divorce was pre-2019. This shows how updates to agreements can switch you to the new law.

• Karak v. Commissioner (6th Cir.): An appellate case affirming the TCJA’s impact. It noted that for divorces executed after 2018 (or materially amended after), the payer has no right to deduct alimony.

• Childers v. Commissioner (Tax Court, 2021): Confirmed the permanency of the TCJA change. The court upheld that payers of post-2018 support get no deduction, signaling the new law is settled.

• Spencer v. Commissioner (Tax Court, 1991): Held that a taxpayer’s voluntary payments to an ex, without a formal decree obligation, were not deductible. This case shows that informal or voluntary support payments do not qualify as alimony for tax purposes.

These cases remind us that the IRS and courts strictly enforce the rules. If your payment isn’t “qualified alimony” by definition, you won’t get the deduction. Legal battles often hinge on details of the divorce decree’s language, so precise terms in your agreement are critical. Tax-savvy attorneys and CPAs often advise couples to specify the intent and tax treatment of support in the decree. If you are drafting or modifying a settlement, make sure it clearly states which tax rules apply to avoid an IRS dispute.

These cases highlight why clear language is crucial. For example, a parent paying support but lacking a decree line saying “alimony” could lose the tax break. Aiming to avoid surprises, consult a tax professional before finalizing any spousal support terms. Adjusting payment amounts or withholdings in advance can prevent unpleasant tax surprises later.

Important Tax Terms Explained

• Alimony (Spousal Support): Payments from one ex-spouse to another under a divorce or separation agreement for the other spouse’s maintenance. (Note: Sometimes called “spousal maintenance.”) Under old law, these payments were taxable to the recipient and deductible for the payer; under current law they are ignored by both. True alimony must meet IRS rules (cash payments, end on remarriage, etc.).

• Tax Cuts and Jobs Act (TCJA): The 2017 federal tax reform law that reshaped many rules. It eliminated the federal alimony deduction for all divorce agreements signed after Dec. 31, 2018. In doing so, it reversed decades of tax practice. (Most TCJA provisions expire in 2025, but the alimony change is permanent.)

• Internal Revenue Service (IRS): The federal tax authority. The IRS administers the tax code and enforces rules on support payments. It publishes guidance (like Publication 504) on what qualifies as alimony. IRS audits or tax court challenges can arise if they believe alimony was misreported.

• Divorce Decree / Separation Agreement: A legal document issued by a court (or between spouses) outlining divorce terms, including support. It specifies amounts and conditions for alimony and child support. Only payments mandated by such a decree (or valid separation instrument) qualify as alimony in tax law. The effective date of this document (when signed) determines whether old or new tax rules apply.

• Qualified Domestic Relations Order (QDRO): A court order splitting retirement plan benefits between spouses after a divorce. QDROs do not govern alimony, but they show how support can be paid via retirement assets. The receiving ex-spouse takes a distribution from the plan; that distribution is taxed to the recipient and is not treated as alimony.

• Modification: Any amendment to an existing divorce decree or support order. If you change the payment amount or terms after the original decree, that’s a modification. Under current IRS guidance, modifications after 2018 are governed by the new alimony rules only if the document clearly adopts them. Otherwise, the original decree’s rules may still control.

• Alimony Recapture: A special tax rule (old law) that can force extra income inclusion if support payments drop too much. For pre-2019 agreements, if the first-year payment is substantially higher than the third-year payment (by more than 15%), the payer must “recapture” some of the earlier deductions as income on the third-year return. It was meant to prevent manipulation of the old deduction.

• Child Support: Money paid for a child’s care and well-being after divorce. By law, child support is never deductible by the payer and never taxable to the recipient. Even if a divorce decree mixes alimony and child support in one order, they are treated completely separately for tax purposes.

Frequently Asked Questions

Q: Can I deduct alimony I pay on my federal tax return?
No. For divorces finalized after 2018, you cannot deduct those payments on your federal return. Only support from agreements dated on or before Dec. 31, 2018 was tax-deductible.

Q: Do I have to pay taxes on the alimony I receive?
No. If your divorce was after 2018, alimony you receive is not taxable income on your federal return. (If your divorce was before 2019, then yes, recipients had to report it as income.)

Q: Is child support tax deductible?
No. Child support payments are never deductible by the payer and never taxable to the recipient by law.

Q: My divorce was in 2018. Are my alimony payments deductible?
Yes. If the agreement was finalized on or before Dec. 31, 2018, the old rules apply: the payer deducts the payments and the recipient includes them as income.

Q: If I modify my 2015 divorce agreement in 2020, do the new rules apply?
No, not automatically. A 2020 modification follows the TCJA rules only if it explicitly states that the old tax treatment no longer applies. Otherwise, the original 2015 decree’s rules continue for tax purposes.

Q: Does paying my ex-spouse’s mortgage or bills count as deductible alimony?
No. Paying a mortgage or other living expenses for an ex is a property settlement or reimbursement, not alimony. Only payments made directly in cash to the spouse (as specified in the divorce decree) qualify as alimony.

Q: Are alimony and spousal maintenance the same for taxes?
Yes. “Spousal maintenance” is simply another term for alimony. The tax treatment is identical: deductible under old law (if criteria met) and not deductible under current law.

Q: If I pay back alimony late, can I still deduct it?
Yes. Under old-law agreements (pre-2019), late payments are still deductible by the payer in the year paid. The original divorce date (before 2019) allows the deduction, even if paid later.

Q: If I live overseas, do U.S. alimony rules apply to me?
Yes. U.S. tax residents (citizens or residents abroad) follow the same rules. Foreign tax laws may also apply.

Q: Can paying alimony let me file as head of household?
No. Alimony payments do not affect filing status. You can only file Head of Household if you have a qualifying dependent child under IRS rules.

Q: Is any part of alimony a tax credit or benefit?
No. After the TCJA change, there are no federal tax credits or deductions for paying alimony on new agreements. The payer gets no special tax break on federal returns.