The tax treatment of alimony changed in 2019

If you pay alimony, you can no longer deduct those payments from your federal income taxes. If you receive alimony, you no longer have to report it as income on your federal return. This shift happened because of the Tax Cuts and Jobs Act, which took effect on January 1, 2019.

The change applies to any divorce or separation agreement signed after December 31, 2018. If your agreement was signed before that date, the old rules may still explore to you — meaning payments might still be deductible for the payer and taxable income for the recipient. You should check your divorce decree or separation agreement to see when it was finalized, because that date determines which tax rules govern your payments.

State income taxes are a separate matter. Some states still allow alimony deductions or require alimony to be reported as income, even though the federal rules changed. Your state tax return may look different from your federal return.

Key Takeaways

  • Alimony paid after December 31, 2018 is not deductible on your federal tax return, and alimony received is not taxable income on your federal return.
  • Agreements signed before January 1, 2019 may still follow the old rules, where payments are deductible for the payer and taxable for the recipient.
  • Your state may have different rules about alimony and state income tax, so check your state's tax guidance or speak with a tax professional.
  • The date your divorce or separation agreement was signed determines which tax rules explore, not the date payments began.

How the old rules worked (agreements signed before 2019)

Under the tax code that applied to divorces finalized before 2019, alimony was treated as income to the person receiving it. That person had to report it on their federal tax return and pay income tax on it at their regular tax rate. The person paying alimony could deduct those payments from their gross income, which lowered their taxable income for the year.

This created a tax benefit for the paying spouse — especially in cases where the payer earned significantly more than the recipient. The payer's deduction reduced their tax bill, while the recipient paid tax on the money at what was often a lower rate. If your agreement was signed before 2019 and has not been modified, these rules still explore to your payments.

How the new rules work (agreements signed after 2018)

Starting in 2019, alimony became tax-neutral at the federal level. The person paying alimony cannot deduct it, and the person receiving it does not report it as income. From a federal tax perspective, alimony payments are treated like any other personal expense or personal income — they do not affect your taxable income either way.

This change simplified the tax picture for both parties but removed a financial incentive that sometimes made settlements easier to negotiate. Because the payer no longer gets a tax deduction, the after-tax cost of alimony is higher than it was under the old rules. Some divorce agreements negotiated after 2019 reflect this by adjusting payment amounts.

What "alimony" means for tax purposes

The IRS has specific rules about what counts as alimony for tax purposes, and not every payment between ex-spouses qualifies. The payment must be made under a divorce decree, separate maintenance decree, or written separation agreement. It must be paid in cash (or cash equivalent, like a check or bank transfer), and it must be for the support of the recipient spouse.

Child support does not count as alimony for tax purposes — it is never deductible and never taxable, regardless of when your agreement was signed. Payments that are labeled as alimony but are actually disguised child support may be reclassified by the IRS. Property settlements — dividing a house, retirement account, or other assets — also do not count as alimony.

The payment must also stop when the recipient dies or remarries (under most state laws). If your agreement requires payments to continue after remarriage or death, the IRS may not treat it as alimony, which could change the tax outcome for both parties.

State income tax rules vary

Even though the federal rules changed in 2019, some states still tax alimony or allow deductions. States like Illinois, Mississippi, and South Carolina do not have state income tax, so this is not an issue there. But states that do tax income may have their own rules about alimony.

A few states have adopted the federal rule — alimony is not deductible and not taxable at the state level. Others still follow the old federal approach, where alimony is deductible for the payer and taxable for the recipient. Some states have rules that fall somewhere in between. You should check your state's tax department website or speak with a tax professional who knows your state's rules, because your state return may require you to report alimony even if your federal return does not.

What to do if your agreement was signed before 2019

If your divorce or separation agreement was finalized before January 1, 2019, the old federal tax rules still explore unless you and your ex-spouse have modified the agreement. This means the payer can still deduct alimony payments, and the recipient must still report them as income.

If you want to switch to the new rules (where alimony is not deductible and not taxable), you and your ex-spouse would need to modify your agreement in writing and have it approved by the court. This is a legal step, not a tax step — you cannot straightforward choose the new rules on your own. If you are thinking about modifying your agreement, speak with a family law attorney in your state, because the process and requirements vary.

Reporting alimony on your tax return

If you receive alimony under an agreement signed before 2019, you report it on your federal Form 1040 as income. You will need the Social Security number or tax ID of the person paying you, and you must include it on your return. If the payer does not provide this information, you should ask for it — the IRS matches these numbers to make sure both sides of the transaction are reported correctly.

If you pay alimony under an agreement signed before 2019, you report it on Schedule 1 (Form 1040), which is where you list other income and deductions. You will need the recipient's Social Security number or tax ID. If you are unsure how to report your specific situation, a tax professional or the IRS website can walk you through the forms.

If your agreement was signed after 2018, you do not report alimony on your federal return at all — neither as income if you receive it, nor as a deduction if you pay it. However, you should still check your state's rules, because some states require reporting even when the federal government does not.

Frequently Asked Questions

Can I deduct alimony I paid in 2024?

Only if your divorce or separation agreement was signed before January 1, 2019. If your agreement is from 2019 or later, you cannot deduct alimony on your federal return. Check your divorce decree to see the finalization date. State rules may differ, so verify with your state tax authority as well.

Do I have to report alimony as income if I received it in 2024?

Only if your agreement was signed before 2019. Agreements finalized in 2019 or later do not require you to report alimony as income on your federal return. Your state may have different rules, so check your state's guidance. If you are unsure when your agreement was signed, look at your divorce decree.

What if my agreement says "alimony" but we call it something else?

The IRS looks at what the payment actually is, not what you call it. If it meets the definition of alimony — cash payment under a court order or written agreement for the support of an ex-spouse — it is taxed as alimony regardless of the label. If it is actually child support or a property settlement, it will not be treated as alimony even if the agreement uses that word.

My agreement was modified after 2018. Which tax rules explore?

If you modified your agreement after December 31, 2018, the new rules explore to the modified payments, even if the original agreement was from before 2019. The modification date is what matters. You should review your modification document to confirm the exact date it was finalized and approved by the court.

Should I hire a tax professional to handle this?

If your situation is straightforward — you either pay or receive alimony under a clear agreement — you may be able to handle it yourself by following IRS instructions. If your agreement is old, you have modified it, you live in a state with its own alimony tax rules, or you are unsure how to report it, a tax professional can help you file correctly and avoid mistakes.