NOTE: FOR TAX YEAR 2020
We can't see your tax return but yes, alimony entered will appear as $0 on your federal income tax return.
For federal income tax purposes: if you receive Alimony (spousal support), Alimony payments resulting from agreements executed after 2018 no longer have to be reported as income 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.
If you pay Alimony (spousal support), Alimony payments resulting from agreements executed after that date can no longer be deducted 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 nondeductible alimony payments now applies.
Even though the amount is not deductible on Federal taxes, it should not display as zero. Several states (MA for one) still allow deductions for alimony. That amount must be reflected in the MA state form. In previous years it carried over properly from federal to MA state. This year (TY2022) it not longer does.
According to the instructions Massachusetts (MA) now conforms to the federal rules for alimony as of January 1, 2022. See the information below for more information.
TIR 23-1 Tax Provisions in the Fiscal Year 2023 Budget Includes MA Personal Income Tax Code Update
The Code as amended on January 1, 2022 and in effect for the taxable year for these purposes, effective for taxable years beginning on or after January 1, 2022. Conformity to the alimony rules for federal return and other situations.
What is allowed on the federal return is what will be allowed on your MA tax return.
[Edited: 03/07/2023 | 12:12p PST]
Ah but it is. The instructions may not be clear, but the state's website is
It's entirely possible that may change in the future, as many thing do in MA tax law, but as of now the payments are deductible.
https://www.mass.gov/service-details/alimony
For Massachusetts income tax purposes however, Massachusetts adopts the federal rules as they existed on January 1, 2005 with respect to the deduction of alimony payments and the inclusion of such payments in income. Therefore, Massachusetts taxpayers can still take a deduction for alimony payments made to a former spouse on their Massachusetts personal income tax return and recipients of such payments must still include them in gross income for tax years subsequent to the TCJA.
TIR 23-1 Tax Provisions in the Fiscal Year 2023 Budget Includes MA Personal Income Tax Code Update
The Code as amended on January 1, 2022 and in effect for the taxable year for these purposes, effective for taxable years beginning on or after January 1, 2022. Conformity to the alimony rules for federal return and other situations. Be sure to review your Tax Summary for MA.
TurboTax Desktop click Forms in the upper right.
TurboTax Online follow these steps.
Tax Tools:
[Edited: 03/07/2023 | 12:12p PST]
Thank you for your time.
The alimony amount was transferred from Fed to MA State prior to the last update (which I installed last night), but not since.
Hopefully this is addressed in subsequent update. If not I will manually add to schedule Y on MA form
Thanks again
Update:
TIR 23-1 Tax Provisions in the Fiscal Year 2023 Budget Includes MA Personal Income Tax Code Update
The Code as amended on January 1, 2022 and in effect for the taxable year for these purposes, effective for taxable years beginning on or after January 1, 2022. Conformity to the alimony rules for federal return and other situations. Be sure to review your Tax Summary for MA.
One last action that could help is to clear your cache and cookies. It helps so many times by eliminating pieces of data that seem to get stuck in the background in every application.
[Edited: 03/07/2023 | 12:19p PST]
Well there has been no update. I have entered the alimony amount in my federal and it goes to zero because of the tax law change regarding alimony
However the only way to get that amount to transfer properly to MA is to do a manual override on schedule Y in the MA state return. That allows everything to be calculated as I would expect, but it won't let me E-file that way.
It keep looping around to "We need more info"..."This should not be overridden"
Ideas?
I'm having the same issue with Turbo Tax as well but it is not populating Alimony I received into my income section and there is no place to add it in
Making some progress over here
Today, alimony or separate maintenance payments relating to any divorce or separation agreements dated January 1, 2019 or later are not tax-deductible in a Federal return by the person paying the alimony. The person receiving the alimony does not have to report the alimony received as taxable income.
Click this link for more info on Filing Taxes After Divorce.
To report alimony you received:
Edited 3/7/2023 | 1:18 pm
That's not the issue
And it's frustrating because people in this situation keep getting the same accurate but non relevant info.
Over and Over.
The issue is there are some of us for who alimony is not deductible federally, but is in MA
The deduction amount is not carrying to MA because TT turns it to zero if your agreement is after the date of the tax law change
It is very much deductible for MA state taxes
Hi
For federal that applies but not Mass State Taxes - and Turbo Tax is not updating the sections correctly on deductions and Income sections
For Massachusetts income tax purposes however, Massachusetts adopts the federal rules as they existed on January 1, 2005 with respect to the deduction of alimony payments and the inclusion of such payments in income. Therefore, Massachusetts taxpayers can still take a deduction for alimony payments made to a former spouse on their Massachusetts personal income tax return and recipients of such payments must still include them in gross income for tax years subsequent to the TCJA.
The place to override are in this thread. I have not tried to e-file yet. That is next
Massachusetts has updated their IRC conformity date from as amended on January 1, 2005 to as amended on January 1, 2022. Meaning that they now conform to many federal provisions and calculations - including the deductibility of alimony paid and the taxability of alimony received. Alimony paid is only deductible if it is deductible on the Federal return, and alimony received is only taxable if it is taxable on the Federal return.