Is Alimony Still Deductible Under the New Tax Law?


For a divorce completed in 2019 and later alimony payments will no longer be deductible and recipients of alimony will no longer include alimony payment in their taxable income.


Under prior tax rules, spouses paying alimony could deduct alimony payments on their tax return and the recipient of alimony had to pay income tax on the amount received.


The old rule still applies for divorce agreements finalized on or before Dec. 31, 2018 (unless the divorce agreement is modified after that date). Be mindful that the old rule still applies to income tax returns filed in 2019.


Recent Posts

See All

Taxation of Non-grantor Trusts

Non-grantor trusts, are separate taxpaying entities. Income taxes generated by the trust are paid for by the trust. The trust must file fiduciary income tax return (Form 1041). In simple terms, if any

When is a Federal Gift Tax Return Required?

For federal gift tax purposes, the value of a gift of property is the fair market value of the property at the time of the gift. Where property is transferred for less than full consideration, the amo

What is a Trustee?

What is a trust? A trust exists when one person (the trustee) holds title to property for the benefit of another person (the beneficiary). A person called the grantor (also known as the settlor or tru