Alymony credit

[Mike9241]

Alimony? There is no credit at least for federal purposes 

if the divorce or separation instrument was executed or modified (any such modification would need to expressly provide that the TCJA is to apply)  after 2018, there is no federal deduction for the payor and it's not taxable to the recipient

[SharonD007]

Assuming that you are asking if you can deduct alimony payments on your tax return. You can  if your divorce or separation agreement was finalized before to January 1, 2019.

For more information, refer to the TurboTax articles and Can I deduct alimony I paid to my ex-spouse? and Video: Tax Tips for Divorced Couples.

[Filipper]

I'm getting mix information from different people in 2021 22 and 23 I did my taxes through TurboTax and I applied my alimony as an income but some people tell me I shouldn't have is that correct because I've been paying taxes on my alimony at this point so does that mean that I should get a credit back

[DoninGA]

@Filipper Since the separation agreement was executed prior to January 1, 2019 then you correctly reported the alimony you received on those tax returns.

Alimony payments resulting from agreements executed after 2018 no longer have to be reported due to the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017. The same holds true for agreements modified after 2018 if the new version specifically states that the TCJA treatment of nonreportable alimony payments now applies.

[Filipper]

Okay so now my question is when I claimed my alimony as an income the IRS taxes me on that amount which has been causing me to get less back. How do I get the IRS to return the money that they took when they shouldn't have. 

[LindaS5247]

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 if your divorce/alimony agreement was finalized before 2019. If your divorce/alimony agreement was finalized after December 31, 2018, then it is not considered taxable income.

TurboTax will properly report your alimony as taxable or not taxable based on your answers to the TurboTax questions about the date your alimony agreement.  (See screenshot below)

If your alimony agreement was finalized before 2019, you can have it 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. 

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.

If you filed tax returns for 2021, 2022 & 2023, that taxed your alimony and should not have, you would have to file amended tax returns to get your money back.

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. 

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 to determine the taxability of your alimony payments.

Click here for "How to file an amended return."

Click here for "How to Correct Federal Tax Returns" 

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"

[LindaS5247]

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 if your divorce/alimony agreement was finalized before 2019. If your divorce/alimony agreement was finalized after December 31, 2018, then it is not considered taxable income.

TurboTax will properly report your alimony as taxable or not taxable based on your answers to the TurboTax questions about the date your alimony agreement.  (See screenshot below)

If your alimony agreement was finalized before 2019, you can have it 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. 

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.

If you filed tax returns for 2021, 2022 & 2023, that taxed your alimony and should not have, you would have to file amended tax returns to get your money back.

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. 

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 to determine the taxability of your alimony payments.

Click here for "How to file an amended return."

Click here for "How to Correct Federal Tax Returns" 

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"