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Tax Alimony Deduction Guide for Divorce Settlements (2026)

Understand alimony tax rules: pre-2019 deduction, post-2019 changes, divorce agreement timing, and alimony tax treatment.

Summary

Alimony tax treatment changed in 2019. This guide explains deduction rules based on divorce agreement date.

Key Steps

  1. 1Pre-2019 agreements: payer deducts, recipient reports as income.
  2. 2Post-2019 agreements: no deduction for payer, no income for recipient.
  3. 3Modification rules: modifying pre-2019 agreement may change treatment.
  4. 4Child support: never deductible, always tax-free to recipient.
  5. 5Property settlement: transferring assets between spouses is tax-free.

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