Is Alimony Received Taxable? Tax Rules Based on Your Divorce Date

Alimony received is taxable income on your federal tax return, but only if the payments were made under a divorce or separation agreement finalized before January 1, 2019

The tax treatment of alimony changed significantly in 2019. If your divorce was finalized on or after January 1, 2019, alimony payments you receive are not taxable to you, and the person paying cannot deduct them. If your divorce was finalized before that date, alimony you receive counts as ordinary income and must be reported on your federal return — you owe income tax on it at your regular tax rate.

The cutoff date matters because Congress changed the tax code in the Tax Cuts and Jobs Act of 2017, and the new rules explore only to agreements signed after December 31, 2018. If you have an older agreement, the old tax treatment still applies unless you and your ex-spouse both agree in writing to adopt the new rules.

State income tax treatment varies. Some states follow the federal rule exactly; others tax alimony differently or do not have a state income tax. You will need to check your state's rules separately when you file.

Key Takeaways

• Alimony received under a divorce finalized before January 1, 2019 is taxable income you must report on your federal return.
• Alimony received under a divorce finalized on or after January 1, 2019 is not taxable income to you.
• The date your divorce was finalized determines which rule applies, not the date you started receiving payments.
• State income tax rules for alimony vary by location and may differ from the federal rule.
• If you have an older agreement, you and your ex-spouse can jointly elect to use the new non-taxable treatment by filing Form 8939 with the IRS.

How to report alimony on your tax return if it is taxable

If your alimony is taxable, you report it on Form 1040 (the main federal income tax form) on the line for alimony received. The IRS calls this "alimony or separate maintenance payments received." You must also include your ex-spouse's Social Security number on the form so the IRS can match it to their deduction claim.

The amount you report should match what your ex-spouse reports as a deduction on their return. If there is a mismatch, the IRS may contact you to clarify. Keep copies of all payment records — bank statements, cancelled checks, or written payment confirmations — in case you need to prove the amount.

Alimony is added to your other income when calculating your tax bracket and your total tax owed. It does not receive any special treatment; it is taxed at the same rate as wages or other ordinary income.

The difference between alimony and child support for tax purposes

Child support is never taxable to you, regardless of when your divorce was finalized. This is true under both the old and new tax rules. Only alimony (also called spousal support or maintenance) follows the 2019 cutoff date.

If you receive payments that are partly alimony and partly child support, only the alimony portion is taxable under the old rules. Your divorce agreement should specify how much of each payment is alimony and how much is child support. If it does not, the IRS treats the entire payment as alimony unless you can show otherwise.

Some agreements use language like "family support" or "combined support" without breaking out the two types. In those cases, you and your ex-spouse may need to work with a tax professional to determine what portion, if any, is taxable.

What happens if you do not report alimony income

If you receive taxable alimony and do not report it, the IRS can catch the discrepancy when your ex-spouse claims the deduction on their return. The IRS matches the two returns and will contact you if the amounts do not line up.

Failing to report income can result in penalties, interest on the unpaid tax, and in some cases criminal charges if the IRS determines the omission was intentional. The safest approach is to report all alimony you receive if your divorce was finalized before 2019, even if you think you should not owe tax on it.

If you believe your alimony should not be taxable but you reported it in past years, you can file an amended return (Form 1040-X) for the past three years to request a refund.

Changing the tax treatment of an older alimony agreement

If your divorce was finalized before January 1, 2019, you and your ex-spouse can choose to use the new non-taxable treatment instead of the old rules. Both of you must agree to this change in writing, and you must file Form 8939 with the IRS to make the election official.

Once you make this election, it applies to all payments made after the year you file the form. You cannot explore it retroactively to payments you already received in prior years. The form must be filed with your tax return for the year the election takes effect.

This option exists because some people with older agreements want the simplicity of the new rules. However, changing the treatment affects both you and your ex-spouse — they lose the deduction, and you stop reporting the income. Make sure you both understand the financial impact before you agree to the change.

State income tax and alimony

Most states that have an income tax follow the federal rule: alimony from pre-2019 divorces is taxable, and alimony from 2019-and-later divorces is not. However, some states have their own rules that differ from federal law.

A few states do not tax alimony at all, regardless of when the divorce was finalized. Others tax it differently depending on whether it is permanent alimony, temporary alimony, or rehabilitative alimony. Some states also have different rules for residents versus non-residents receiving alimony from someone in another state.

You will need to check your state's tax department website or speak with a tax professional who knows your state's rules. The federal treatment and the state treatment are separate — you may owe federal tax but not state tax, or vice versa.

Frequently Asked Questions

Do I have to report alimony if I receive it in cash?

Yes, if your alimony is taxable, you must report it whether you receive it in cash, by check, by bank transfer, or any other method. The IRS does not care how the payment was made — only that you received it and that it meets the definition of alimony under your divorce agreement. Keep records of all payments you receive.

What if my ex-spouse and I disagree about whether the payments are alimony or something else?

The divorce agreement controls. If the agreement calls the payments alimony, they are alimony for tax purposes. If it calls them something else or does not label them, the IRS looks at whether they meet the legal definition of alimony: they must be in cash, made under a divorce or separation agreement, and stop when the recipient remarries or dies. If you and your ex-spouse genuinely disagree, you may need a tax professional or attorney to review the agreement.

Can I claim alimony as a deduction if I am receiving it?

No. If alimony is taxable to you, you report it as income, but you do not get to deduct it again. The person paying the alimony is the one who claims the deduction (if the divorce was finalized before 2019). You straightforward report what you received as income on your return.

What if I receive alimony from someone who lives in another country?

The same federal rules explore: if your divorce was finalized before 2019, the alimony is taxable; if it was finalized in 2019 or later, it is not. You still must report it on your U.S. tax return. If you also owe taxes in another country, you may be able to claim a foreign tax credit, but that is a separate issue to discuss with a tax professional.

Do I need to make estimated tax payments if I receive alimony?

If alimony is your only income and no taxes are being withheld, you may need to make quarterly estimated tax payments to avoid a penalty. The amount depends on your total income and tax bracket. If you are unsure, use the IRS Form 1040-ES to calculate what you owe, or speak with a tax professional.