All tagged Personal Finance

Are Alimony Payments Considered Taxable Income?

Alimony is a support payment made to a former (or separated) spouse under a divorce decree or separation instrument in an attempt to maintain the predivorce lifestyle. Simply stated, for pre-2019 divorces, alimony is taxable income to the one who receives it and tax deductible to the one who pays it. For post-2018 divorces, alimony is no longer taxable income to the one who receives it or tax deductible to the one who pays it.