Alimony is still taxable for divorces that were finalized before December 31, 2018. And still deductible to the payer. Alimony is not deductible or taxable for divorces finalized on or after January 1, 2019. If your divorce is modified after January 1, 2019, you have the option of retaining the taxability and deductibility of alimony or changing to non-taxable/non-deductible alimony as part of the modification.