Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
jbeg40
New Member

During my divorce the lawyer told me I would not have to pay taxes on alimony but I just got a letter saying I may owe back taxes from 2018. Is alimony taxable or no?

 
4 Replies
Bsch4477
Level 15

During my divorce the lawyer told me I would not have to pay taxes on alimony but I just got a letter saying I may owe back taxes from 2018. Is alimony taxable or no?

Alimony income was taxed for divorce during 2018 but not after that year. 

Bsch4477
Level 15

During my divorce the lawyer told me I would not have to pay taxes on alimony but I just got a letter saying I may owe back taxes from 2018. Is alimony taxable or no?

Alimony income was taxed for divorce during 2018 and before but not for divorces occurring after that year. 

VolvoGirl
Level 15

During my divorce the lawyer told me I would not have to pay taxes on alimony but I just got a letter saying I may owe back taxes from 2018. Is alimony taxable or no?

See IRS pub 504 on Alimony starting on page 12.  If your divorce was final after 2018 then Alimony is not taxable or deductible.

https://www.irs.gov/pub/irs-pdf/p504.pdf

 

Ask your lawyer to pay any penalty or interest for not reporting it.

Opus 17
Level 15

During my divorce the lawyer told me I would not have to pay taxes on alimony but I just got a letter saying I may owe back taxes from 2018. Is alimony taxable or no?

For a divorce that was finalized on or before December 31, 2018, alimony is taxable to the recipient and deductible to the payor, and this was not changed by the new tax law.  In other words, the new law does not automatically change the tax treatment of old divorces. 

 

For divorces finalized on or after January 1, 2019, alimony is not taxable to the recipient and is not deductible to the payer.

 

(If you have a divorce that was 2018 or earlier, and it was modified after January 1, 2019, the alimony is still taxable to the recipient and deductible to the payor unless the modification expressly says that the new rules apply to the modification.  For example, you and your ex might ask the court to enter a modification that would reduce the alimony payments in return for making the new rules apply--your ex pays less but does not get a deduction, and you receive less but don't pay taxes on it.)

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.62m
Discussions

Manage cookies
v