Is Alimony Taxable? How Alimony and Child Support Are Taxed in 2026

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Alimony is taxable if your divorce was finalized before 2019. If your divorce was finalized in 2019 or later, alimony is not taxable income for the recipient, and the payer can’t deduct alimony from their taxes.

These alimony tax rules still confuse people because the Tax Cuts and Jobs Act changed those alimony rules fairly recently. This article will clarify current alimony tax rules, divorce tax implications and how alimony and child support could affect your taxes.  

Is Alimony Taxable in 2026?

According to the IRS, alimony is only taxable in 2026 if your divorce was finalized prior to 2019, thanks to changes made by the Tax Cuts and Jobs Act.

• If a divorce was finalized before 2019, the person paying alimony may deduct it from their taxable income, and alimony recipients must typically include the payments as taxable income.
• If a divorce was finalized Jan. 1, 2019 or later, the person paying alimony cannot deduct those payments from their taxes, and alimony recipients don’t have to claim it as income.
• The Tax Cuts and Jobs Act rules remain in place, and alimony tax rules are unchanged for 2026.  
• These rules only apply to federal income tax, and states have their own rules regarding if alimony is taxable.

How Divorce Date Determines Alimony Tax Rules

The Tax Cuts and Jobs Act of 2017 changed the alimony tax rules based on the divorce date.

Divorce or Separation Agreements Finalized Before 2019 

Alimony was and is taxable for divorces or separations that were finalized on or before Dec. 31, 2018. The old rules still apply to those divorces and separations.  

Under the old rules, individuals who pay alimony can deduct those payments from their taxes. Individuals who receive alimony are typically required to include those payments in their taxable income.

Divorce or Separation Agreements Finalized in 2019 or Later 

The Tax Cuts and Jobs Act changed how alimony is taxable in divorces and separations finalized in 2019 or later. The Act stated that individuals who paid alimony for divorces or separations finalized in 2019 or later could no longer deduct those payments from their taxes. Individuals who receive alimony payments from agreements finalized in 2019 or later do not have to report the alimony as taxable income.

The Tax Cuts and Jobs Act also affected agreements from before 2019 that were modified in 2019 or later. For example, if your divorce occurred before 2019 but a court changed your alimony payment terms in 2019, you must follow the new alimony tax rules for agreements finalized in 2019 or later. Courts may alter your spousal support agreement due to changes in income, employment, health, living situations or financial needs.

Alimony Taxes for the Person Paying Support

If you are the person paying support, it’s essential to understand whether or not you can deduct your alimony payments:

• You may be able to deduct alimony payments if your divorce or separation was finalized before Dec. 31, 2018.
• You can’t deduct alimony payments if your divorce or separation was finalized in 2019 or later.
• You can’t deduct alimony payments if your divorce or separation was modified in 2019 or later, such as if your spousal support order was later altered by a court.  

You may be used to deducting your alimony payments from your taxable income, but if a court needs to modify your alimony agreement, that income would no longer be tax-deductible. Your taxable income would be higher and you would pay more in taxes. As a result, it’s important to understand how any changes in how alimony impacts your taxes so you can ensure you set aside enough money to pay your taxes.  

Alimony Taxes for the Person Receiving Support

If you are receiving alimony payments, you’ll need to understand whether that income is considered taxable so you can set aside enough money to pay your taxes:

• Your alimony payments are considered part of your ordinary taxable income if your divorce or separation was finalized before 2019.
• You do not have to include alimony payments in your taxable income if your divorce or separation was finalized or modified in 2019 or later.

Since alimony payments are treated as ordinary, taxable income in agreements finalized before 2019, they can significantly increase your taxes. It’s possible that alimony payments could even move you up into a higher tax bracket, depending on your income before you receive those payments.

While an employer deducts taxes from every paycheck, alimony isn’t taxed until you pay your taxes, so it’s important to set aside a portion of each alimony payment you receive. You can do this by reviewing your tax bracket from the previous year and taking your percentage out of each check.

For instance, if you were in the 22% tax bracket, set aside 22% of each alimony payment to make sure you have the cash needed to pay your taxes.  

Is Child Support Taxable?

Child support is never taxable and never tax-deductible for either party:

• Child support benefits the child, not the spouse, so the IRS does not subject the payments to taxation.
• Child support payments do not need to be included as income on your federal tax return.
• Alimony payments benefit the spouse, so they may be considered taxable income depending on when your divorce or separation was finalized.  

Alimony vs. Child Support: Key Tax Differences at a Glance 

Other Divorce-Related Payments That Can Affect Taxes

In addition to alimony and child support, other divorce-related payments can affect your taxes.

Property Settlements 

The IRS generally doesn’t consider a divorce property settlement between spouses to be a gain or a loss, so initial property settlements are usually non-taxable. However, according to Bean Kinney & Korman, if a spouse later sells the marital home, they may need to pay taxes on any appreciation on the home.

Lump-Sum Alimony 

After a divorce or separation, you might pay or receive alimony in a lump sum. That lump-sum alimony may be taxable depending on when the divorce or settlement agreement was finalized.

If it was finalized before 2019, the person paying the lump sum may deduct it, and the recipient must include it as taxable income. But if the agreement was finalized in or after 2019, the person paying the lump sum cannot deduct that payment, and the recipient doesn’t have to claim it as income.

Payments That Don’t Qualify as Alimony 

The IRS doesn’t define certain payments, like child support or cash property settlements, as alimony. It’s important to verify how the IRS labels different types of payments, since those labels can have implications for whether you have to pay taxes on the money you receive.  

Common Alimony Tax Mistakes to Avoid

Alimony tax rules are confusing, and it’s easy to make tax mistakes if you’re paying or receiving alimony. Many taxpayers assume that all alimony is tax-deductible, but whether you can deduct an alimony payment made or received depends on when your divorce was finalized.

Some taxpayers misreport child support as income, since it’s often associated with alimony. Since child support is intended to only benefit the child, the IRS doesn’t tax child support, so you could be overpaying if you include child support payments in your income.

Modified alimony agreements have significant tax implications, thanks to the Tax Cuts and Jobs Act. If your agreement is modified, it can affect whether your alimony is taxable. As a result, it’s essential to recognize and follow any modified agreement language.

Some people don’t realize that they’ll need to pay estimated taxes on the alimony they receive. If your divorce or settlement was finalized before 2019, your alimony payments are taxable, and you will need to pay quarterly taxes on the income. Be sure to set aside a portion of each payment and use IRS Form 1040-ES to calculate and pay your estimated tax.

When to Talk to a Tax or Divorce Professional

Understanding alimony and child support rules can be complicated, especially if you’re dealing with a more complex situation. Modifications to your alimony agreement may change how the payments affect your taxes, and mixed payment agreements can be difficult to understand. Large or long-term payments require an accurate understanding of how they’ll impact your taxes, too.

If you’re dealing with this or with another complicated situation, be sure to talk to a tax or divorce professional. These professionals can provide you with advice specific to your unique situation, giving you confidence and peace of mind.

Angela Mae Watson contributed to the reporting for this article.

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