Alimony refers to payments made to or for a spouse or former spouse under a divorce or separation instrument. Only payments that meet specific requirements qualify as alimony for tax purposes. Voluntary payments not required by an instrument do not qualify.
Not all payments under a divorce or separation instrument are alimony. Some payments are specifically excluded.
Payments That Are NOT Alimony
- Child support
- Non‑cash property settlements
- Payments representing a spouse’s share of community income
- Payments to maintain the payor’s own property
- Use of the payor’s property
Mortgage payments do not qualify as alimony if the home is owned by the payor. If the home is fully owned by the recipient, mortgage payments may qualify as alimony.
Requirements for a Payment to Be Alimony
A payment to or for a spouse/former spouse qualifies as alimony only if:
- It is paid in cash (including checks or money orders)
- The divorce or separation instrument does not designate the payment as non‑alimony
- The spouses do not file a joint return
- The spouses are not members of the same household when the payment is made
- There is no liability to continue payments after the recipient’s death
- The payment is not treated as child support
Third‑Party Payments
Payments to third parties (e.g., rent, medical bills, tuition, insurance premiums) may qualify as alimony if:
- Required by the divorce or separation instrument, or
- Made at the written request of the spouse, and:
- They are in lieu of direct alimony
- Both spouses agree to treat them as alimony
- The request is received before filing the return
Jointly Owned Home
If the instrument requires mortgage payments on a jointly owned home, half of the payment is treated as alimony.
Tax Treatment Depends on Agreement Date
Agreements Executed After 2018 (TCJA Rules)
Under the Tax Cuts and Jobs Act (TCJA):
- Alimony is not deductible by the payor
- Alimony is not income to the recipient
This applies to:
- Agreements executed after December 31, 2018
- Earlier agreements modified after 2018 if the modification states that TCJA treatment applies
Under these rules, alimony is treated similarly to child support.
Agreements Executed in 2018 or Earlier (Old Rules)
For agreements executed on or before December 31, 2018:
- Alimony is deductible by the payor
- Alimony is taxable income to the recipient
This treatment continues even after 2018, unless:
- The agreement is modified and
- The modification elects TCJA treatment
If no election is made, the old rules continue to apply.
Child Support
Child support is never alimony.
- Not deductible by the payor
- Not taxable to the recipient
A payment is treated as child support if:
- It is tied to a child‑related event (age, leaving school, marriage, employment, etc.)
- The payment decreases at a time clearly associated with such an event
If alimony decreases when a child reaches a certain age, the IRS treats that reduction as child support, not alimony.