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Alimony Deductibility

Alimony No LOnger DeductibleAlimony deductibility – forget about it.! Before the new Tax Cuts and Jobs Act (TCJA), payments that met the tax-law definition of alimony could be deducted by the payer for federal income tax purposes. Recipients of alimony payments had to report the payments as taxable income.
The TCJA eliminates deductions for alimony payments required by post-2018 divorce agreements
For payments required under divorce or separation instruments that were executed after Dec. 31, 2018, the new law eliminates the deduction for alimony payments. Recipients of affected alimony payments will no longer have to include them in taxable income.
This TCJA treatment of alimony payments will apply to payments that are required under divorce or separation instruments that are: (1) executed after Dec. 31, 2018 or (2) modified after that date if the modification specifically states that the TCJA treatment of alimony payments (not deductible by the payer and not taxable income for the recipient) now applies.
No change in tax treatment for payments required by pre-2019 divorce agreements.

Read More About Spousal Support (Alimony) in Maryland.