Is alimony paid deductible in 2018?

Here’s the story. For payments required under divorce or separation instruments that is executed after Dec. 31, 2018, the new law eliminates the deduction for alimony payments. Recipients of affected alimony payments will no longer have to include them in taxable income.

Is alimony deductible 2019?

Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018.

Are there any tax deductions for alimony after 2018?

Alimony Deductions After 2018 For payments required under divorce or separation instruments reached after December 31, 2018, the tax deduction for alimony payments is eliminated. Alimony recipients will no longer include the payments in taxable income.

Can a spouse make an alimony payment during a divorce?

In divorce situations, one spouse or ex-spouse may become legally obligated to make payments to the other party. Since these payments are often substantial, locking in tax deductions for the payer has often been a substantial issue.

How are alimony payments treated in the new tax law?

Payment recipients must include alimony payments that are required by divorce agreements executed before 2019 in their taxable income. So this is a continuation of business as usual. When payments fail to meet the tax-law definition of alimony, they are generally treated as either child support payments or payments to divide the marital property.

What happens to an alimony payment when the recipient dies?

In other words, the payment obligation must cease if the recipient party dies in order for the payment to qualify as deductible alimony. Failing to meet this requirement for payments to cease if the recipient dies is the most common reason for lost alimony deductions.