What Are Alimony and Separate Maintenance Payments?
Alimony and separate maintenance refer to payments made to a spouse or former spouse under a divorce or separation agreement. This can include payments specified in a divorce decree, separate maintenance decree, or written separation agreement. For federal tax purposes, such payments may be considered alimony or separate maintenance if they meet specific requirements.
Requirements for Alimony or Separate Maintenance Classification
For a payment to qualify as alimony or separate maintenance under federal tax rules, all of the following conditions must be met:
The spouses must not file a joint return together.
Payments must be made in cash, including checks or money orders.
The payment must be made to or for the benefit of a current or former spouse under a divorce or separation agreement.
The spouses must live separately at the time of payment if they are legally separated.
There must be no obligation to continue payments after the recipient spouse's death.
The payment must not be classified as child support or part of a property settlement.
The agreement must not specify that the payment is excluded from the payee's income or disallowed as a deduction for the payer.
Payments That Do NOT Qualify as Alimony
Not all payments made under a divorce or separation agreement are considered alimony. The following are not classified as alimony or separate maintenance:
Child support payments (these are neither deductible nor considered taxable income)
Property settlements, whether paid in lump sums or installments
Payments representing the recipient's share of community property income
Payments made to maintain the payer's property
Use of the payer's property (e.g., allowing a former spouse to live in the payer's house)
Voluntary payments not required by the divorce or separation agreement
If the divorce or separation agreement stipulates both child support and alimony, but the payer fails to make the full payment, the partial payment is applied to child support first. Only the remaining balance is treated as alimony.
Tax Treatment of Alimony and Separate Maintenance
The tax treatment of alimony depends on when the divorce or separation agreement was executed:
Before 2019: Alimony payments are deductible by the payer and treated as taxable income for the recipient.
After 2018: Alimony payments are not deductible by the payer and are not included as taxable income for the recipient.
For agreements executed before 2019 but modified after 2018, the post-2018 tax rules apply if the modification specifically states that the alimony deduction repeal applies.
Reporting Alimony on Tax Returns
If you make taxable alimony or separate maintenance payments, you can deduct them from your taxable income, even if you don't itemize deductions.
Use Form 1040 or Form 1040-SR, attaching Schedule 1 to report the deduction.
You must include the recipient's Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN).
Failing to provide the recipient's SSN or ITIN could result in the deduction being disallowed and a $50 penalty.
If you receive taxable alimony, you must report it as income on your tax return:
Use Form 1040 or 1040-SR, attaching Schedule 1.
Nonresident aliens should report alimony income on Form 1040-NR with Schedule NEC attached.
You must provide your SSN or ITIN to the payer. Failing to do so may result in a $50 penalty.
Additional Information and Resources
For more details on the rules surrounding alimony and separate maintenance, including special cases requiring recapture of alimony, refer to:
Publication 504 – Divorced or Separated Individuals
For pre-1985 agreements, consult the 2004 version of Publication 504