Is alimony received in 2025 taxable?

by | May 2, 2025 | Income Reporting, Individual Taxes

Here’s what HIVE AI had to say about “Is alimony received in 2025 taxable?”:

Whether alimony received in 2025 is taxable depends on when your divorce or separation agreement was executed. The Tax Cuts and Jobs Act (TCJA) made significant changes to the tax treatment of alimony payments.

Alimony Under Agreements Executed After December 31, 2018

If your divorce or separation agreement was executed after December 31, 2018, alimony payments you receive in 2025 will not be taxable income to you.

Amounts paid as alimony or separate maintenance under a divorce or separation instrument executed after 2018 won’t be deductible by the payer. Such amounts also won’t be includible in the income of the recipient. IRS – Publication 555: Community Property

Under divorce or separation instruments executed after December 31, 2018, alimony payments are not taxable to the recipient (and not deductible by the payor). When you calculate your gross income to see whether you’re required to file a tax return, don’t include these alimony payments. IRS.gov FAQ

Alimony received under a divorce or separation instrument executed after 2018 won’t be includible in your income. IRS – Publication 525: Taxable and Nontaxable Income

Alimony Under Agreements Executed Before 2019

If your divorce or separation agreement was executed on or before December 31, 2018, and has not been modified after that date, alimony payments you receive in 2025 will generally be taxable income to you.

Under divorce or separation instruments executed before 2019, alimony payments are taxable to the recipient (and deductible by the payer). When you calculate your gross income to see whether you’re required to file a tax return, include these alimony payments. IRS.gov FAQ

If you entered into a divorce or separation agreement on or before December 31, 2018, and the agreement has not been changed after December 31, 2018, to expressly provide that alimony received is not included in your former spouse’s income, the following rules apply. IRS – Publication 504: Divorced or Separated Individuals These rules include the traditional treatment where alimony is taxable to the recipient.

Agreements Modified After December 31, 2018

If your divorce or separation agreement was executed before 2019 but was modified after December 31, 2018, the tax treatment depends on the modification:

The same is true of alimony paid under a divorce or separation instrument executed before 2019 and modified after 2018, if the modification expressly states that the alimony isn’t deductible to the payer or includible in the income of the recipient. IRS – Publication 555: Community Property

Under divorce or separation instruments executed on or before December 31, 2018, but modified after this date, alimony payments are not taxable to the recipient (and not deductible by the payor) if the modification expressly provides that alimony payments are neither includable in, nor deductible from, income. IRS.gov FAQ

TCJA rules apply to divorce or separate maintenance agreements that are executed after Dec. 31, 2018, and the agreements executed before January 1 2019, that are modified after December 31, 2018, so long as the modification (1) changes the terms of the alimony or separate maintenance payments, and, (2) states that the alimony or separate maintenance payments are not deductible by the payer spouse or includable in the income of the receiving spouse. IRS IRM 21.6.6 Specific Claims and Other Issues

Alimony or separate maintenance payments are deductible from the income of the payer spouse and includable in the income of the receiving spouse as long as the payments are made under a divorce or separation agreement executed by December 31, 2018. If the divorce or separate maintenance agreement is modified after December 31, 2018, so long as the modification is not the one described in the preceding paragraph, the deduction is allowable. IRS IRM 21.6.6 Specific Claims and Other Issues

Reporting Requirements for Taxable Alimony

If your alimony is taxable (from a pre-2019 agreement), you’ll need to report it on your tax return:

If your alimony is included in your income, and you file Form 1040 or 1040-SR, report alimony you received on Schedule 1 (Form 1040), line 2a. If you file Form 1040-NR, report alimony you received on Schedule NEC (Form 1040-NR). IRS – Publication 504: Divorced or Separated Individuals

Definition of Alimony for Tax Purposes

For agreements where alimony is still taxable, the tax code defines alimony as:

“In general, the term alimony or separate maintenance payment means any payment in cash if (A) such payment is received by or on behalf of a spouse under a divorce or separation instrument, (B) the divorce or separation instrument does not designate such payment as a payment which is not includable in gross income under this section and not allowable as a deduction under Section 215, (C) in the case of an individual legally separated from his spouse under a decree of divorce or of a separate maintenance the payee spouse and the payor spouse are not members of the same household at the time such payment is made, and (D) there is no liability to make any such payment for any period after the death of the payee spouse, and there is no liability to make any payment (in cash or property) as a substitute for such payments after the death of the payee spouse.” Dawson U.S. Tax Court Opinions: Nancy Weinstein

Conclusion

To summarize:

  • If your divorce or separation agreement was executed after December 31, 2018, alimony you receive in 2025 is NOT taxable.
  • If your agreement was executed before January 1, 2019, and has not been modified, alimony you receive in 2025 IS taxable.
  • If your pre-2019 agreement was modified after December 31, 2018, alimony is NOT taxable if the modification expressly states that the payments are not includible in your income.

The tax treatment of alimony in 2025 will follow these rules established by the Tax Cuts and Jobs Act, as there is no current legislation that would change this treatment for the 2025 tax year.

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