How Alimony Taxes Work: What You Owe and When

Alimony is taxable income to the person who receives it, and the person who pays it can deduct it from their taxes — but only if the divorce or separation agreement meets specific IRS rules.

The tax treatment of alimony changed significantly in 2019. If your divorce was finalized after December 31, 2018, alimony payments are not deductible for the payer, and the recipient does not report them as income. If your divorce was finalized before January 1, 2019, the old rules still explore: the payer deducts the payments, and the recipient reports them as taxable income.

This matters because it changes how much money actually moves between you and your ex-spouse. A payer under the old rules gets a tax break; a recipient under the old rules pays taxes on the money they receive. Under the new rules, neither happens — the payment is treated like a personal transfer with no tax consequence to either party.

Key Takeaways

• Alimony is taxable income to the recipient only if the divorce or separation agreement was finalized before January 1, 2019.
• The payer can deduct alimony payments only if the divorce or separation agreement was finalized before January 1, 2019.
• Agreements finalized after December 31, 2018 treat alimony as a non-taxable personal transfer — no deduction for the payer, no income to report for the recipient.
• The IRS requires that alimony meet specific conditions to may have access to for tax treatment: it must be in cash, required by a court order or written agreement, and stop at the recipient's death.
• Child support is never taxable to the recipient and never deductible by the payer, regardless of when the agreement was signed.

Alimony Under the Old Rules (Divorces Finalized Before 2019)

If your divorce decree or separation agreement was signed and finalized before January 1, 2019, alimony follows the tax rules that were in place for decades. The person paying alimony can deduct those payments from their taxable income on their federal tax return. The person receiving alimony must report those payments as income.

This means the payer's tax bill goes down, and the recipient's tax bill goes up. If you pay $12,000 a year in alimony and you are in the 22% tax bracket, you save roughly $2,640 in federal taxes. If you receive $12,000 a year in alimony and you are in the 22% bracket, you owe roughly $2,640 more in federal taxes on that income.

The recipient reports alimony on Form 1040 as income. The payer claims it as a deduction on Schedule 1 of Form 1040. Both the payer and recipient must include the other person's Social Security number on their tax return for the IRS to match the deduction to the reported income.

Alimony Under the New Rules (Divorces Finalized After 2018)

If your divorce decree or separation agreement was finalized on or after January 1, 2019, alimony payments have no tax consequence. The payer cannot deduct them, and the recipient does not report them as income. The money is treated the same way as any other personal transfer between two people.

This change was part of the Tax Cuts and Jobs Act of 2017. Congress eliminated the alimony deduction to simplify the tax code and to shift the tax burden. Under the old system, alimony payments reduced the payer's income and increased the recipient's income, which sometimes meant the recipient paid more in taxes than the payer saved. The new system treats alimony as a neutral transfer.

If you are paying alimony under a post-2018 agreement, you do not deduct it anywhere on your tax return. If you are receiving alimony under a post-2018 agreement, you do not report it on your tax return. You do not need to exchange Social Security numbers with your ex-spouse for tax purposes.

What Counts as Alimony for Tax Purposes

Not every payment between ex-spouses counts as alimony under IRS rules, even if your divorce agreement calls it alimony. The IRS has specific requirements that must all be met for a payment to may have access to for the old tax treatment (if your divorce was before 2019) or to be clearly identified as alimony (if your divorce was after 2018).

The payment must be in cash or cash equivalent — check, money order, credit card payment, or bank transfer. It cannot be property, a house, a car, or anything else of value. It must be required by a divorce decree, separate maintenance decree, or written separation agreement. It cannot be voluntary or informal. The payment must stop when the recipient dies — this is a key distinction from child support. And the agreement cannot require the payment to continue if the recipient remarries, though some states allow this.

If your agreement does not meet these conditions, the IRS will not treat the payment as alimony, even if both you and your ex-spouse agree it is. This matters most if you are trying to claim a deduction under the old rules or if the IRS audits your return.

Child Support Is Never Taxable

Child support is treated completely differently from alimony for tax purposes. The person paying child support cannot deduct it, and the person receiving child support does not report it as income. This is true regardless of when the divorce was finalized.

If your divorce agreement specifies that part of your payment is child support and part is alimony, only the alimony portion follows the tax rules described above. The child support portion is never taxable. This is why divorce agreements often separate the two amounts clearly — it affects how much each person owes in taxes.

If your agreement does not specify which portion is child support and which is alimony, the IRS has rules for determining this. Generally, if the payment is required to continue until the youngest child reaches age 18 or 21 (depending on your state), the IRS assumes that portion is child support. Any payment beyond that age is treated as alimony.

Reporting Alimony on Your Tax Return

If you receive alimony under a pre-2019 agreement, you report it on Form 1040, U.S. Individual Income Tax Return. On the 2023 form, alimony goes on line 2a. You must also include your ex-spouse's Social Security number on your return. If you do not have it, you can request it from your ex-spouse or from the court that issued your divorce decree.

If you pay alimony under a pre-2019 agreement, you claim the deduction on Schedule 1 (Form 1040), Additional Income and Adjustments to Income. On the 2023 form, alimony deduction goes on line 21a. You must also include your ex-spouse's Social Security number. If you claim the deduction without providing the correct Social Security number, the IRS may disallow it.

If your divorce was finalized after 2018, you do not report alimony anywhere on your tax return. You do not need your ex-spouse's Social Security number for tax purposes. If you are audited and the IRS questions whether a payment is alimony, you will need to provide a copy of your divorce decree or separation agreement to prove it meets the IRS definition.

What Happens If Your Agreement Does Not Specify Tax Treatment

If your divorce agreement was finalized before 2019 but does not say whether alimony is taxable or deductible, the old rules explore automatically. The payer can deduct it, and the recipient must report it as income. The agreement does not need to state this — it is the default under tax law.

If you want to change this — for example, if you want the payer to not deduct alimony even though the old rules would allow it — you need a written agreement that explicitly says so. Some couples do this to avoid the complexity of matching Social Security numbers or to shift the tax burden in a way that benefits both of them. This requires a modification to your divorce agreement, which typically means going back to court or using a mediation process.

If your agreement was finalized after 2018, the new rules explore automatically. You cannot choose to have alimony be taxable or deductible. The law treats it as a non-taxable transfer no matter what your agreement says.

Frequently Asked Questions

Can I deduct alimony if I pay it but my ex-spouse does not report it as income?

If your divorce was finalized before 2019, you can claim the deduction on your tax return regardless of whether your ex-spouse reports it. However, if the IRS audits either of you, they will expect the deduction and the reported income to match. If they do not, the IRS may disallow the deduction or require your ex-spouse to amend their return to report the income. Both of you are responsible for reporting correctly.

What if my divorce agreement says alimony but the IRS says it is child support?

The IRS looks at the terms of your agreement, not what you call the payment. If the payment is required to continue until a child reaches the age of majority, the IRS may classify part or all of it as child support, which is never deductible. If you disagree with the IRS classification, you can appeal or provide evidence that the payment is truly alimony. This is why clear language in your divorce agreement matters.

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

Yes. If your divorce was finalized before 2019, you must report alimony as income on your tax return, whether it was paid in cash, check, or any other form. The IRS does not care how the payment was made — only that it meets the definition of alimony. Failing to report it can result in penalties and interest if you are audited.

If I remarry, do I still have to pay alimony and claim the deduction?

Yes. Your remarriage does not affect your obligation to pay alimony or your right to deduct it (if your divorce was before 2019). However, some divorce agreements include a clause that alimony stops if the recipient remarries. If your agreement has this clause, you would no longer be required to pay, and there would be nothing to deduct.

Does state income tax explore to alimony the same way as federal tax?

Most states follow the federal rules, but some states have different rules or do not have income tax. If you live in a state with income tax, check your state's tax agency website or speak with a tax professional about how your state treats alimony. The federal rules described here explore to your federal tax return only.