Alimony

Spousal support (alimony) payments are considered taxable income for spouse or common-law partner prior to 2019. If divorced before 2019 and paying alimony, these payments are considered an above-the-line deduction. 

Beginning in 2019, if a divorce or separation agreement was executed after Dec. 31, 2018, the alimony is no longer included in a spouse’s (recipient) income or deductible to the payer.

It also applies to separation agreements that were modified after Dec. 31, 2018 if it:

• changes the terms of the alimony or separate maintenance payments
• states that the alimony or separate maintenance payments are not deductible by the payer, spouse or includable in the income of the receiving spouse

Otherwise, it is deductible from the income of the payer and must be included in the income of the receiving spouse as long as the divorce or separation agreement is on or before Dec. 31, 2018.

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This entry was posted on Monday, November 16th, 2020 at 1:43 pm and is filed under Deductions, Income. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.