Ask Terry Questions Reporting Alimony on Federal Tax Form

Reporting Alimony on Federal Tax Form

By Terry Savage on April 16, 2024 | Wild Card

My sister’s divorce was finalized in 2020 and included alimony to be paid to her by her ex-husband. I’ve been reading that if a divorce decree was finalized after 2019, the recipient doesn’t have to claim those payments as income, and the payor doesn’t have to report payments made as deductions. Is this correct?

Terry Says

That is correct. Here is how it is described legally:

It does not matter when did you file for divorce, if your divorce settlement was finalized by the court on or after January 1, 2019, the Tax Cuts and Jobs Act (TCJA) will have an impact on the taxation of alimony payments because the TCJA ended the tax deduction benefit and reporting requirements for support until at least 2025 (or, after 2025 until Congress changes the law.) Alimony payments whether for the spousal benefit or for the child support, will not be taxable in hands of the recipient and no deduction or credit for the paying spouse and no income reporting requirement for the recipient.



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