Key Takeaways
- Alimony is deductible ONLY for divorce instruments executed before January 1, 2019 - post-2018 divorces have no deduction for payer and no income for recipient
- Six requirements: paid in cash, under divorce instrument, not designated as non-alimony, not in same household, no liability after recipient death, not child support
- The alimony recapture rule applies if payments decrease by more than $15,000 in any of the first three years
- Payers must report recipient's SSN on Schedule 1; failure results in $50 penalty
- Pre-2019 agreements modified after 2018 keep old rules UNLESS modification expressly adopts TCJA treatment
Last updated: January 2026
Alimony Paid (Pre-2019 Divorces)
The Critical Date: January 1, 2019
| Divorce Date | Payer | Recipient |
|---|---|---|
| Before 2019 | Deducts alimony | Includes in income |
| After 2018 | No deduction | Not taxable |
Six Requirements for Alimony (Pre-2019)
- Cash payment (not property)
- Under divorce/separation instrument
- Not designated as non-alimony
- Not in same household (if legally separated)
- No liability after recipient's death
- Not child support
Child Support vs. Alimony
Payments are treated as child support (not deductible) if:
- Specifically designated as child support
- Reduced based on a child-related contingency (turning 18, marrying, etc.)
Alimony Recapture Rules
If payments decrease by more than $15,000 in the first three years:
- Payer reports recaptured amount as income in Year 3
- Recipient deducts recaptured amount in Year 3
Modification of Pre-2019 Agreements
Pre-2019 agreements keep old treatment unless modification expressly adopts TCJA rules.
Reporting
- Payer: Schedule 1, Line 19a (amount) + Line 19b (recipient's SSN)
- Failure to include SSN: $50 penalty
EA Exam Tips
- Know the 2019 cutoff date
- Memorize the six requirements
- Child support contingencies disqualify payments
- $15,000 recapture threshold
Test Your Knowledge
Tom and Lisa divorced in 2017. In 2024, how is Tom's alimony payment treated?
A
B
C
D
Test Your Knowledge
Which would DISQUALIFY a payment from alimony treatment?
A
B
C
D
Test Your Knowledge
A pre-2016 divorce agreement is modified in 2024. What tax treatment applies?
A
B
C
D