6.5 Alimony Paid (Pre-2019 Divorces)
Key Takeaways
- Alimony is deductible by the payer (and taxable to the recipient) ONLY for divorce or separation instruments executed before January 1, 2019.
- Post-2018 divorces: no payer deduction and no recipient income inclusion — the TCJA rule was made PERMANENT by OBBBA (2025).
- Six requirements for alimony treatment: paid in cash, under divorce instrument, not designated as non-alimony, not in same household, no liability after recipient death, and 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 the recipient's SSN on Schedule 1; failure to do so triggers a $50 penalty.
The Critical Date: January 1, 2019
| Divorce Date | Payer | Recipient |
|---|---|---|
| Before 2019 | Deducts alimony | Includes in income |
| After 2018 | No deduction | Not taxable |
OBBBA update (2025): The TCJA treatment of alimony (no deduction / no income for post-2018 divorces) was scheduled to sunset after 2025. OBBBA made the post-2018 alimony rule permanent. For divorce instruments executed in 2025 and later, there is no payer deduction and no recipient income inclusion — permanently.
Six Requirements for Alimony (Pre-2019 Instruments)
- 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, finishing school, etc.)
Alimony Recapture Rules
If payments decrease by more than $15,000 in the first three years:
- Payer reports the recaptured amount as income in Year 3
- Recipient deducts the recaptured amount in Year 3
Modification of Pre-2019 Agreements
Pre-2019 agreements keep the old (deductible/taxable) treatment unless a modification expressly adopts TCJA rules. With OBBBA making TCJA treatment permanent, this distinction continues to matter for any pre-2019 instrument still being paid out.
Reporting (Pre-2019 Alimony Only)
- Payer: Schedule 1, Line 19a (amount) + Line 19b (recipient's SSN)
- Failure to include the SSN: $50 penalty
EA Exam Tips
- Know the January 1, 2019 cutoff
- OBBBA made TCJA alimony rules permanent — post-2018 divorces never get the deduction
- Memorize the six requirements
- Child-related contingencies disqualify payments as alimony
- $15,000 recapture threshold in the first three years
Tom and Lisa divorced in 2017. In 2025, how is Tom's alimony payment to Lisa treated?
Which of the following would DISQUALIFY a payment from alimony treatment under a pre-2019 divorce?
A couple divorces in 2025. How is alimony treated under federal tax law?