How do I report and pay taxes on alimony received?

IRS Guidelines for Reporting and Paying Taxes on Alimony

Alimony and Separate Maintenance Payments

According to the IRS guidelines outlined in [Topic No. 452, Alimony and Separate Maintenance], the following criteria must be met for payments to be considered alimony or separate maintenance for federal tax purposes:

1. The spouses do not file a joint return with each other.

2. The payment is in cash (including checks or money orders).

3. The payment is to or for a spouse or a former spouse made under a divorce or separation instrument.

4. The spouses are not members of the same household when the payment is made (applies only if legally separated under a decree of divorce or separate maintenance).

5. There is no liability to make any payment (in cash or property) after the death of the recipient spouse.

6. The payment is not treated as child support or a property settlement.

7. The divorce or separation agreement does not designate the payment as not includable in the gross income of the payee spouse and not allowable as a deduction to the payer spouse.

Tax Treatment of Alimony Payments

The tax treatment of alimony or separate maintenance payments depends on the date the divorce or separation instrument was executed:

- For Agreements Executed Before 2019: Generally, alimony or separate maintenance payments are deductible by the payer spouse and includable in the recipient spouse's income. [Alimony, Child Support, Court Awards, Damages 1] provides this information.

- For Agreements Executed After 2018: Alimony or separate maintenance payments made under a divorce or separation agreement executed after 2018 are not deductible by the payer spouse and are not included in the recipient spouse's gross income. This change was brought about by the Tax Cuts and Jobs Act and is detailed in [Divorce or separation may have an effect on taxes].

Reporting Alimony Payments

- For the Payer: If you paid amounts that are considered taxable alimony or separate maintenance, you may deduct from income the amount of alimony or separate maintenance you paid. This is reported on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors (attach Schedule 1 (Form 1040)). The payer must include the SSN or ITIN of the recipient spouse.

- For the Recipient: If you received amounts that are considered taxable alimony or separate maintenance, you must include the amount of alimony or separate maintenance you received as income. This is reported on Form 1040 or Form 1040-SR (attach Schedule 1 (Form 1040)) or on Form 1040-NR, U.S. Nonresident Alien Income Tax Return (attach Schedule NEC (Form 1040-NR)). The recipient must provide their SSN or ITIN to the payer spouse.

Important Considerations

- Child support is not deductible and is not considered income.

- If a divorce or separation instrument provides for alimony and child support, and the payer spouse pays less than the total required, the payments apply to child support first, with only the remaining amount considered alimony.

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Sources:

Topic no. 452, Alimony and separate maintenance - Internal Revenue Service 2024-08-03

Alimony, Child Support, Court Awards, Damages 1 - Internal Revenue Service 2024-08-02

Divorce or separation may have an effect on taxes 2024-08-01

Publication 504 (2023), Divorced or Separated Individuals 2024-08-02

Publication 525 (2023), Taxable and Nontaxable Income 2024-08-03

Publication 17 (2023), Your Federal Income Tax - Internal Revenue Service 2024-07-29

Publication 555 (03/2020), Community Property - Internal Revenue Service 2024-08-03

Page 1 of 30 6:03 - 8-Jan-2024 Divorced - Internal Revenue Service 2024-07-31

Federal income tax withholding and reporting on other kinds of U.S source income paid to nonresidents 2024-08-01

Filing taxes after divorce or separation - Internal Revenue Service 2024-08-03