Alimony Deductibility

Alimony payments can be deducted by the payor and included in income by the recipient.

In order for this to work, the alimony must qualify as alimony.

The payments must be in cash, checks or money orders. If payments are to a third party (stated to be such in the divorce decree), the payments can be considered alimony if they otherwise qualify for alimony.

Payments must be required by the decree or separation agreement.

The decree cannot designate the alimony payments as “not alimony”.

Spouses can not be members of the same household (much as they may want to be).

Alimony payments cannot be treated as child support.

Alimony payor is not liable to make payments after the recipient’s death.

Payor and recipient cannot file a joint tax return.