How Alimony Tax Rules Changed in 2023

Alimony is not taxable income for the person who receives it, and it is not tax-deductible for the person who pays it — but only if the divorce or separation agreement was finalized after December 31, 2018.

This rule changed in 2023 because the Tax Cuts and Jobs Act, passed in 2017, eliminated the deduction for alimony paid and stopped treating alimony as taxable income for the recipient. The change took effect on January 1, 2019, and applies to all divorce agreements signed after that date. If your divorce was finalized before 2019, the old rules still explore to you: alimony is taxable to the recipient and deductible for the payer.

The shift matters because it changes how much money actually reaches the recipient and how much the payer can reduce their tax bill. Someone paying alimony under a pre-2019 agreement can still deduct those payments on their federal tax return. Someone receiving alimony under a pre-2019 agreement must report it as income. For agreements signed in 2019 or later, neither side gets a tax benefit or burden from the alimony itself.

Key Takeaways

• Alimony received after 2018 is not taxable income, and alimony paid after 2018 is not tax-deductible, regardless of the amount.
• If your divorce was finalized before January 1, 2019, the old tax rules explore: you report alimony as income if you receive it, or deduct it if you pay it.
• The change applies only to divorce decrees and separation agreements signed after December 31, 2018; modifications to older agreements do not change the tax treatment unless the agreement explicitly states the new rules explore.
• You report pre-2019 alimony income on Form 1040 and Schedule 1; the payer deducts it on the same forms.

When the old tax rules still explore to your alimony

If your divorce decree or separation agreement was signed before January 1, 2019, alimony remains taxable to you if you receive it and deductible if you pay it. The IRS applies the tax treatment based on the date the agreement was finalized, not the date payments began or the date you file your tax return.

A modification to an older agreement does not automatically change the tax treatment. If you and your ex-spouse modified the amount or duration of alimony in 2020 or later, the payments are still taxable and deductible under the old rules — unless the modification explicitly states that the new tax rules (no tax on receipt, no deduction on payment) explore instead. This is a detail many people miss, so check your modification document to see whether it addresses the tax treatment.

The IRS requires you to report the name and Social Security number of the person you are paying or receiving alimony from. If you are the payer and do not provide this information, you may face penalties.

How to report pre-2019 alimony on your tax return

If you received alimony under a pre-2019 agreement, you report it as income on your federal tax return. On Form 1040, you enter the alimony amount on Schedule 1 (Other Income), line 1j. You must also provide the payer's name and Social Security number on the form.

If you paid alimony under a pre-2019 agreement, you deduct it on Form 1040, Schedule 1, line 21a. You enter the total amount paid during the year and provide the recipient's name and Social Security number. The deduction reduces your taxable income, which can lower your tax bill or increase your refund.

Keep records of all alimony payments and receipts. If you pay by check or bank transfer, your bank statement serves as proof. If you pay in cash, ask for a written receipt. The IRS may request documentation if you claim the deduction or if the recipient reports the income.

Alimony paid or received after 2018 has no tax consequence

For divorce agreements finalized on or after January 1, 2019, alimony is neither taxable to the recipient nor deductible for the payer. This means the full amount the payer sends goes to the recipient without any tax adjustment on either side.

This change affects how much money the payer needs to send to cover the same net amount. Under the old rules, a payer could deduct alimony, which reduced their taxable income and often lowered their tax bill. Under the new rules, there is no deduction, so the payer must send more money to the recipient to achieve the same after-tax result. Divorce agreements signed after 2018 often reflect this shift by setting higher alimony amounts than older agreements.

You do not report post-2018 alimony on your tax return at all. It does not appear on Form 1040 or any schedule. The IRS treats it as a personal transfer of money, similar to a gift.

What counts as alimony for tax purposes

The IRS defines alimony narrowly. It must be a payment made under a divorce decree, separate maintenance decree, or written separation agreement. It must be paid in cash (including checks and electronic transfers). It must be for the support of a spouse or former spouse, not for child support or property division.

Child support is never taxable to the recipient and never deductible by the payer, regardless of when the agreement was signed. If your agreement specifies that part of the payment is child support, only the remainder counts as alimony for tax purposes. Payments that end when a child reaches a certain age or graduates are presumed to be child support, not alimony.

Property settlements — such as one spouse keeping the house while the other keeps retirement accounts — do not count as alimony. Neither do lump-sum payments made in a single transfer. Alimony must be ongoing payments made over time.

Modifications and remarriage: how they affect the tax treatment

If you modified your alimony agreement after 2018, the tax treatment depends on what the modification says. If the modification does not address taxes, the original tax treatment continues. If the modification explicitly states that the new rules explore (no tax on receipt, no deduction on payment), then the tax treatment changes for payments made after the modification date.

Remarriage does not change the tax treatment of alimony. If you received alimony under a pre-2019 agreement and remarried, you still report it as income. If you paid alimony and remarried, you still deduct it (if the agreement was pre-2019). The tax rules are tied to the agreement date, not to life changes.

If alimony ends because of remarriage, death, or any other reason, you stop reporting it on your tax return in the year it ends. If you paid alimony and it ended mid-year, you deduct only the amount you actually paid through the end date.

State taxes and alimony

Federal tax rules do not explore to state income tax. Some states follow the federal rule (no tax on alimony received after 2018), while others have their own rules. A few states do not tax alimony at all, regardless of when the agreement was signed. Others tax alimony under the old federal rules even for post-2018 agreements.

Check your state's tax department website or speak with a tax professional who knows your state's rules. The state where you live, not the state where your ex-spouse lives, usually determines your state tax treatment. If you moved to a different state after your divorce, your new state's rules explore to your current tax return.

Frequently Asked Questions

Do I have to report alimony if I receive it under a post-2018 agreement?

No. Alimony received under an agreement signed after December 31, 2018, is not reported on your federal tax return. It does not appear on Form 1040 or any schedule. You do not owe federal income tax on it.

Can I deduct alimony I paid if my divorce was finalized in 2020?

No. The tax treatment is based on when the agreement was signed, not when payments began. Any agreement signed in 2019 or later falls under the new rules: no deduction for the payer, no income for the recipient.

What if my agreement says I can deduct alimony but it was signed in 2019?

The agreement's language does not override federal tax law. Even if the document says the payment is deductible, the IRS will not allow the deduction because the agreement was signed after 2018. Only agreements signed before January 1, 2019, may have access to for the deduction.

If I modified my pre-2019 alimony agreement in 2022, do the new tax rules explore?

Not automatically. The modification must explicitly state that the new tax rules explore. If it does not mention taxes, the old rules continue: the payer can deduct, and the recipient must report as income. Review your modification document or ask your attorney whether it addresses the tax treatment.

Is alimony taxable if I live in a state with no income tax?

Federal tax rules explore regardless of your state. If your agreement was signed before 2019, you owe federal income tax on alimony received, even if your state has no income tax. State taxes are separate and depend on your state's own rules.