Is alimony I receive taxable income in 2025? What about alimony I pay — is it deductible?

The tax treatment of alimony depends entirely on when your divorce or separation agreement was finalized — and many people get this wrong.

For divorces finalized on or after January 1, 2019:

This is the post-TCJA rule that still applies in 2025. Alimony payments are not deductible for the paying spouse and not taxable income for the receiving spouse. Both parties are essentially tax-neutral on these payments. No reporting on either return is required.

For divorces finalized on or before December 31, 2018 (and not modified after that date):

The old rules apply. The paying spouse can deduct alimony as an above-the-line adjustment to income (meaning you don't need to itemize to claim it), and the receiving spouse must report it as taxable income. These deductions and inclusions are reported on Schedule 1 of Form 1040.

Key rules for pre-2019 agreements to qualify:

• Payments must be made in cash (checks or money orders count; property transfers do not)
• The divorce or separation agreement must be in writing
• The spouses cannot live together or file a joint return
• Payments cannot continue after the recipient's death
• The payment cannot be designated as child support

Modified agreements: If you had a pre-2019 agreement but modified it after December 31, 2018, and the modification specifically states that the new TCJA rules apply, you fall under the new rules (no deduction, no income).

State tax rules may differ: California is a notable exception — it still follows pre-TCJA rules regardless of when the divorce was finalized. If you live in California, check your state return carefully.

Bottom line: check the date on your divorce decree. When it was signed determines everything.