Question

Which of the following taxpayers has to report their alimony payments as income?

Alex received $22,000 of alimony payments this tax year. His divorce agreement was made in February 2019.


Fiona received $5,000 of alimony payments this tax year. Her divorce decree was originally signed in January 2018. However, her alimony was increased with an updated agreement in March 2021.


Martin received $3,000 of alimony payments this tax year. His divorce agreement was executed on December 30, 2018.


Nancy received alimony and child support payments for a total of $15,000 during the tax year. The divorce agreement was executed in April 2019. Nancy did not receive all of the child support or alimony payments she was entitled to as she was supposed to be paid $22,000 for the year.

Answer 1

Fiona and Martin must report the alimony they received as income.

Why:
- Under the TCJA, alimony/maintenance from divorce or separation instruments executed after Dec. 31, 2018 is not includible in the recipient’s income. Alex’s agreement (Feb 2019) and Nancy’s agreement (Apr 2019) were executed after 12/31/2018, so their payments are not taxable to them. (Child support is never taxable anyway.)
- Fiona’s original decree was signed in Jan 2018 and Martin’s was executed Dec 30, 2018 — both pre‑2019 — so payments under those instruments remain taxable to the recipient (unless the pre‑2019 instrument was expressly revised to adopt the post‑2018 tax treatment).