Is Alimony Tax Deductible?

Is alimony tax deductible? Is it considered income? Florida attorney Sergio Cabanas discusses whether alimony is taxable to the receiving spouse or tax deductible to the paying spouse in the State of Florida.
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Watch the Video in English:
Is Alimony Tax Deductible?
• Is Alimony Tax Deducti...
Mira el video en español:
¿La pensión alimenticia es deducible de impuestos?
• ¿La pensión alimentici...
**Please note that the information in this video is not an adequate substitute for a consultation with an attorney who is knowledgeable in this subject area and could review the specifics of your individual matter and determine how the law would apply in your particular case.**
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Sergio Cabanas, Esq. has been practicing law since 1991, after graduating from Washington College of Law in Washington D.C. Attorney Cabanas is admitted to practice in the State of Florida and the U.S. Court for the Southern District of Florida and the U.S. Bankruptcy Court. He founded the Divorce and Mediation Law Firm in 2006.
The Divorce and Mediation Law Firm focuses on Divorce, Mediation, Child Custody, Child Support, Alimony, Prenuptial Agreements, Post-nuptial Agreements, Domestic Violence, and Post-Divorce Related issues.
The firm has three locations: Pembroke Pines, Weston, and Sunny Isles Beach in South Florida. If you would want to consult, you can reach the firm at [phone]. We are open from 9AM to 5PM, Mondays to Fridays.
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Timestamps:
00:00 Introduction
00:08 Is Alimony Tax Deductible?
02:11 Outro
Transcript:
Today's question is: Sergio, my spouse has been awarded alimony and I'm obligated to pay the spousal support. Can I use those alimony payments for tax deductions?
Well, as a general rule, divorce matters involving payments are serious matters that need to be understood so you know how to maximize your situation whether you're receiving the alimony payments or you're the paying spouse.
The answer to that question is both, yes and no. And let me explain why.
Effective January 1st, 2019, there's a new tax law that states that any alimony awarded is no longer taxable to the recipient. And not tax deductible to the paying spouse.
Now, it's important to remember that this amendment is not retroactive.
That means that any divorce that was finalized or any Marital Settlement Agreement, that was executed on or after January 1st, 2019, is covered by the amendment.
In contrast, any divorce that's finalized or any Marital Settlement Agreement, signed before January 1st, 2019, will be governed by the previous tax law. Where alimony is both taxable and deductible, as long as it meets the requirements imposed by the IRS.
So, going back to the question. The answer is yes, alimony is tax deductible if your divorce was finalized, or Marital Settlement Agreement, was concluded before the effective date of January 1st, 2019. As long as it satisfies 1 of 7 requirements by the IRS.
And the answer is no, it is no longer tax deductible nor can it be considered an income if the divorce or settlement is concluded after this effective date.
Normally, the taxability of alimony has been a bargaining chip during divorce negotiations.
On top of that, matters relating to taxation is a different situation altogether. So, I suggest that you do your due diligence and understand where you divorce stands in terms of the taxability of alimony.
Discuss the merits of your case with a qualified attorney before going into mediation, so that you can get the best outcome possible from your divorce case.
I hope this short video provided you some guidance over a very complicated but commonly asked questions about the taxability of alimony.
Of course, this short video is not a substitute for an actual consultation with an attorney who can review the specific circumstances of your case.
Thank you again for joining me today. And as always, stay informed so you can stay strong.

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Do you have questions or concerns about alimony? If you live in South Florida, give us a call at [phone] so we can provide you with options.