Taxation of Alimony

Alimony, or spousal support, is typically treated differently for tax purposes depending on when the agreement was made. If an alimony agreement was signed before 2019, the paying spouse can usually deduct the payments from their income, and the recipient must report it as income. For agreements made or modified after 2018, alimony payments are generally not deductible for the payer, nor considered taxable income for the recipient, due to new tax laws. It's important to review the specific terms of the divorce agreement and current tax laws, or consult a tax professional, to understand the exact implications.