How do I Deduct Alimony Payments on my California State Return?

California's treatment of alimony depends on when the divorce or separation agreement was executed. Beginning January 1, 2019 through December 31, 2025, California did not conform to the federal changes that eliminated the alimony deduction. As a result, qualifying alimony payments could still be deducted on a California return, and alimony received remained taxable for California purposes. Beginning January 1, 2026, California conforms to federal law and alimony is generally no longer deductible by the payer or taxable to the recipient.

Am I Eligible to Deduct Alimony?

You may be eligible to deduct alimony payments on your California return if:

1. Your divorce or separation agreement was executed before January 1, 2026.
2. The payments qualify as alimony under California tax law.

If your divorce or separation agreement was executed on or after January 1, 2026, alimony payments are not deductible on your California return. 

Important Exception for Modified Agreements

A divorce or separation agreement executed on or before December 31, 2025 may also become subject to the post-2025 rules if it is modified after December 31, 2025, and the modification specifically states that the California conformity rules under SB 711 apply. In that case, alimony payments are no longer deductible for California purposes. 

Pre-2019 vs. 2019-2025 Agreements

• Agreements executed on or before December 31, 2018: Alimony paid and received is reported on the federal return and generally flows through to the California return automatically. 
• Agreements executed from January 1, 2019 through December 31, 2025: Federal law does not allow an alimony deduction, but California does. California taxpayers must make an adjustment on Schedule CA (540 or 540NR) to claim the deduction or report the income. 

How Do I Enter Alimony Paid?

If your agreement qualifies for the California alimony deduction, follow these steps:

1. Select Federal.
2. Select Deductions.
3. Choose Select Forms and continue.
4. Select Adjustments to Income.
5. Select Alimony Paid.
6. Enter the alimony amount paid and the date of the divorce or separation agreement.
7. Select State.
8. Edit the California Return.
9. Select Basic Information.
10. Select Additional Personal Information.
11. Enter the requested information for the alimony recipient.
12. Continue to save your entries.

I'm Receiving a Message to Enter the Name of the Person Receiving Alimony

If you're receiving a message indicating that additional information is needed for your California return, the California return may be missing information about the alimony recipient.

To resolve the message:

1. Edit the California Return.
2. Select Basic Information.
3. Select Additional Personal Information.
4. Enter the name of the person who received the alimony payments.
5. Continue through the interview to save your changes.

Once the recipient information is entered, the message should be cleared and the California adjustment can be completed.

Important Information

• California allows a deduction for qualifying alimony payments made under divorce or separation agreements executed before January 1, 2026, subject to California's alimony rules. 
• California does not allow an alimony deduction for agreements executed on or after January 1, 2026. 
• A pre-2026 agreement that is modified after December 31, 2025 may also become subject to the non-deductibility rules if the modification expressly provides that the California conformity rules apply. 
• The California adjustment is reported through Schedule CA (540 or 540NR). There is no California Form 3532 used for an alimony deduction. 

Frequently Asked Question

Why am I being asked for the recipient's name?

California may require information about the alimony recipient when a taxpayer claims a California alimony adjustment. If the return review identifies missing recipient information, navigate to:

State → California Return → Basic Information → Additional Personal Information

and enter the recipient's name before continuing. This information is needed to complete the California adjustment and finalize the return.

Additional Information