Alimony – is it still deductible?

Another significant change that occurs under the new tax law is the deductibility of Alimony (sometimes called “Spousal Support” or “Spousal Maintenance”). Previously, the person paying alimony could deduct it from their taxable income and the person receiving it had to claim it as income. But, for divorce or separation agreements (and modifications to these agreements) executed after December 31, 2018 this is no longer the case. Which means that the person paying the alimony does NOT deduct it from their income and the person receiving it does NOT claim it as income. Alimony arrangements made on or before December 31, 2018 are unchanged by the law.

If you have questions regarding your particular arrangement, call us at (480) 888-7111 to schedule your free tax consultation.

Disclaimer: For informational purposes only. Does not constitute legal, financial, or other advice. Consult with an attorney before taking any action.