Can I deduct alimony paid in 2019?

July 05, 2019 by Selena Quintanilla
Wedding cake split with the groom on one side and the bride on the other

So, Selena... 


My divorce was finalized in November of 2018. Per our agreement, I will begin making alimony payments in November of 2019 and will be paying a substantial amount for years to come. I was counting on taking a deduction for the payments on my taxes to lessen the sting, but heard that the new tax law did away with that option.  


Will I be able to deduct alimony payments under the TCJA? 




So, Ben... 


You're right. The TCJA did make a significant change to how alimony is reported and deducted. In short, since the payments received are no longer required to be reported, payments made are no longer deductible − in some cases.  


Given the information you provided, it sounds like you will still be able to take the deduction.  


Here's why: 


The changes made to alimony under the TCJA apply to divorce agreements finalized after December 31st, 2018. Prior to the change, recipients of alimony were required to report the payments as taxable income, and the payer was able to deduct the amount they paid to reduce their tax liability. Since your divorce was settled in 2018, these rules will be the same for you. Keep in mind that if you and your ex-spouse modify this agreement in the future, the reporting and deductibility of these payments will remain the same unless either of you makes specific mention of the TCJA in the adjustment.  


If your ex requests the agreement be modified to fit the new law, you may want to discuss reducing the amount of alimony you're paying, especially if the payments are a substantial bit of your income. On the upside, you were given a year to get settled before paying into alimony which is more than most.  Making smart money moves during this time can also lessen the sting of what you’re going through.



Selena Quintanilla, CTEC
Communications Associate


Selena Quintanilla is a Communications Associate at TaxAudit, and a California Tax Education Council (CTEC) registered tax professional. She is now on a mission to bring clarity and comprehensibility to a topic that keeps us all up at night at least once a year-TAXES! Please, send coffee! 


Recent Articles

Inheritance on top of money
Generally, when you inherit money it is tax-free to you as a beneficiary. However, like so much in tax law, the answer to this question is “it depends.”
Warning tax scam sign laying on a keyboard
The IRS has published a “Dirty Dozen” list to warn taxpayers to beware of joining the thousands of people who lose millions of dollars to scammers each year.
Stimulus Check
If you are currently under audit with IRS, you will still receive a stimulus check if your income falls within the eligibility limits.
small business owner
If you are the sole proprietor, the chance of being selected for audit by the IRS is 4.5 to 12 times higher than it is individuals without a business.
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.