How can a divorce affect my income tax situation (alimony/spousal support)?

Divorce can affect several areas of your tax return, including how alimony (spousal support) is reported. The tax treatment of alimony depends largely on when your divorce or separation agreement was finalized.

Most taxpayers with divorce agreements executed after December 31, 2018, cannot deduct alimony payments, and recipients do not report alimony as taxable income. 

If your divorce agreement was finalized before January 1, 2019, different rules may apply.

Alimony Received Under Pre-2019 Agreements

If you receive alimony under a divorce or separation agreement executed before January 1, 2019, and the payments meet IRS requirements, the alimony is generally considered taxable income in the year you receive it.

Because taxes are not typically withheld from alimony payments, you may need to:

• Make estimated tax payments during the year
• Increase withholding from your paycheck by updating your Form W-4

Entering Alimony Received in the Program

1. Go to Federal
2. Select Income (Select My Forms)
3. Begin on Alimony Received

Alimony Paid Under Pre-2019 Agreements

If you pay alimony under a qualifying divorce or separation instrument executed before January 1, 2019, you may be able to deduct those payments on your federal tax return. Payments that are voluntary or not required by the agreement generally do not qualify.

Requirements for Deductible Alimony

To qualify as alimony for federal tax purposes, all of the following must apply:

• The payment is made in cash.
• The divorce or separation agreement does not designate the payment as non-alimony.
• The spouses are not members of the same household when the payment is made (if legally separated under a divorce or separate maintenance decree).
• There is no obligation to continue payments after the recipient spouse's death.
• The payment is not treated as child support. 

Entering Alimony Paid in the Program

1. Go to Federal
2. Select Deductions (Select My Forms)
3. Choose Adjustments to Income
4. Begin on Alimony Paid

Child Support vs. Alimony

It's important not to confuse child support with alimony.

• Child support paid is never deductible.
• Child support received is never taxable. 

Only qualifying alimony payments may receive special tax treatment.

Payments That Are Not Considered Alimony

The IRS does not treat the following as alimony:

• Non-cash property settlements
• Payments that represent your spouse's share of community property income
• Use of the payer's property
• Voluntary payments not required by a divorce or separation agreement

Social Security Number Requirement

If you receive taxable alimony under a pre-2019 agreement, you must provide your Social Security number to the person paying the alimony. Failure to do so may result in an IRS penalty.

What About Agreements Executed After 2018?

For divorce or separation agreements executed after December 31, 2018:

• Alimony payments are not deductible by the payer.
• Alimony payments are not taxable income to the recipient. 

These rules may also apply to certain agreements executed before 2019 that were later modified and specifically adopted the newer tax treatment.

Additional Information

For more details about the tax rules for divorced or separated individuals, see IRS Publication 504, Divorced or Separated Individuals.