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 |
2025 rule: TCJA changed the treatment of divorce instruments executed after 2018 without a scheduled 2025 sunset. A post-2018 instrument generally provides no payer deduction and no recipient inclusion.
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. 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
- TCJA post-2018 alimony rules have no scheduled sunset — 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?
Tom deducts; Lisa includes in income
No deduction; not taxable
Split equally between them
Tom deducts half
Which of the following would DISQUALIFY a payment from alimony treatment under a pre-2019 divorce?
Payment by check
Reduction when the child turns 18
Monthly payments
The recipient remarried
A couple divorces in 2025. How is alimony treated under federal tax law?
Payer deducts; recipient includes in income
No payer deduction; recipient does not include in income
Payer deducts only if MAGI is under $200,000
Treatment expires after 2025
Sections you finish are checked off in the contents.