Alimony

Alimony is the payment of money to or for a spouse or former spouse under a divorce or separation agreement.

Prior to 2019, a taxpayer that paid alimony or separate maintenance payments to a former spouse could deduct the amount of such payments from gross income. The recipient of such payments was required to include them in gross income.  This rule applies to both Federal and Massachusetts income tax returns.

With the passage of the Tax Cuts and Jobs Act of 2017 (TCJA), both the deduction for alimony paid by a taxpayer and the inclusion of alimony in gross income for the recipient were repealed for Federal income tax purposes. These changes apply to any divorce or separation instrument executed after December 31, 2018. For any divorce or separation instrument executed prior to January 1, 2019, the original reporting rules as described above still apply.

Note: Alimony payments are not to be confused with child support payments. Child support payments are neither deductible by the payer nor taxable to the recipient, for both Federal and Massachusetts income tax purposes.