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Get your taxes done using TurboTax
Alimony payments may be taxable depending on the date on which the divorce/alimony agreement was executed. The Tax Cuts and Jobs Act of 2017 (TCJA) recently changed the way alimony payments are taxed.
If you are receiving alimony payments, you will need to declare them as income on your tax return since your divorce was finalized before 2019.
So for 2019 and 2020, your alimony payments would have been considered as taxable income. TurboTax properly reported your alimony as taxable income in 2021 through 2024 based on your answers to the TurboTax questions about the date your alimony agreement. (See screenshot below)
If your divorce papers are modified to explicitly spell out that the repeal of the deduction for alimony payments applies, payments under your modified divorce agreement will be taxed according to the new rules.
If it is not modified, your alimony payments will remain taxable because your agreement was entered into prior to January 1, 2019.
You will enter your Alimony into TurboTax in the "Wages & Income" section, under "Less Common Income" as "Alimony Received".
TurboTax asks you questions about the date of your alimony agreement so it can properly determine the taxability of your alimony.
Your screens will look something like this in TurboTax Desktop:
Alimony is reported under "Wages & Income" under "Less Common Income" as "Alimony Received"
In both TurboTax Desktop and TurboTax Online you will be asked if you received alimony.
In TurboTax Desktop, you will enter the date of your alimony agreement so the program can determine if it is taxable or not.
If you get your alimony agreement modified, you will enter that information on this screen as well.
Your screens in TurboTax online will look a little different:
You will enter your alimony under "Wages & Income" as "Less Common Income" under "Alimony Received"
In TurboTax Online it is worded a little differently, but again you will enter your alimony agreement date and if you
get your agreement modified you will enter that information on this page as well.
Click here for "Video: Tax Tips for Divorced Couples
Click here for "Filing Taxes After a Divorce: Is Alimony Taxable?"
Click here for "Topic no. 452, Alimony and separate maintenance"
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