You alimony is taxed as regular income so every persons taxable alimony is taxed differently. It also depends on your filing status.
You can use the chart in this link to determine your tax bracket.
When calculating your taxable income you will deduct your standard or itemized deductions to determine which bracket you fall into.
So, if you are receiving $14,000 a year in alimony and have income from employment of $40,000 per year you have total income of $54,000. If you are filing as head of household your standard deduction would be $19,400. Your taxable income would be $34,600 (54,000-19,400) which would be in the 12% bracket. This does not mean your entire $34,600 would be taxed at 12%.
The first $14,650 would not be taxed. So, in this example, you would have $19,950 taxed at 12% for your federal taxes.
Your mortgage interest will only benefit you if the interest payments and the total of your other itemized deductions such as medical expenses in excess of 7.5% of your AGI, charitable donations and other taxes like state and local income taxes or property taxes are more than your standard deduction. You cannot deduct the entire mortgage payment only the interest portion. The interest will be reported to you on form 1098 which you will receive from your mortgage holder.
The 2022 Standard Deductions are as follows:
- Married Filing Joint (MFJ) $25,900
- Married Filing Separate (MFS) $12,950
- Head of Household (HOH) $19,400
- Single $12,950
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