Alimony Paid after Modification

[celstria]

Divorce was final in November 2009, a modification to the amount to be paid monthly was reduced November 2024.  The original decree states "Husband shall pay Wife spousal support the sum of $1,150.00 bi weekly commencing on Entry of Judgement. If Husband receives  a cost of living increase, Wife will also receive the same percentage increase based on Husband's cost of living increase."

The new amount to be paid effective December 2024 is $1,100 monthly.  The court document states "Effective December 1, 2024, respondent shall pay to Petitioner the sum of $1,100 per month as and for spousal support."

There is nothing stated about the tax consequences for this.  Will this new amount continue to be deductible for the one who pays the support and taxable for the one who receives the support? Or is it now no longer valid since it was modified in 2024?

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[Vanessa A]

It depends on the wording.  If it does NOT expressly state the repeal of the deduction for alimony payments applies to the modification, then it is still deductible for you and taxable to her.  

You can't deduct alimony or separate maintenance payments made under a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. Alimony and separate maintenance payments you receive under such an agreement are not included in your gross income. Alimony and Separate maintenance