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Attorney answers (2)
You can review Chapter 18 (or thereabout) in Publication 17 for the IRS's guidelines on when alimony is tax deductible. P17 is available for free at the IRS's website: www.irs.gov .
In general, alimony (spousal maintenance) is tax deductible to the paying (former) spouse if the payment is ordered by a court and in the payment is in cash. There are other requirements. You should review your facts and options with your attorney.
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You have to file a full 1040 (not A or EZ), write the amount of alimony on line 31a, include the ex-spouse's SSN on line 31b. The income is then taxable to the spouse. A few other considerations apply. See the link below for IRS Pub 17 and look for Table 18-1.
Other answers (1)
gaztaxlaw
Answered by a user, about 2 years ago.
Alimony is tax deductible under federal law. Since most states start with Adjusted Gross Income (AGI), and alimony is one of the deductions made to determine AGI, it generally has no state tax impact.
But first you need to determine what amount is truly alimony. A divorce decree which specifically states an amount for alimony is great, but where alimony is blended with child support, you'll have a tough time proving your case. And if it simply calls for 'maintenance', the IRS will allege the full amount is for child support (assuming you have children), and thus is nondeductible. Because alimony is taxable to the spouse, many divorce attorneys I know will avoid it - the spouse receiving the payments is usually in a worse-off situation, and doesn't want an additional tax burden. However, in high-income situations, this is not the case, and alimony often creeps in to allow the spouse to 'maintain the lifestyle to which [they] have become accustomed.' Related Questions1 Attorney answers:
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