Alimony and Taxes

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Alimony and taxes are closely connected and depend on the timing of the divorce agreement. Before 2019, alimony affected both spouses’ tax returns—one reported income, the other claimed a deduction. After 2018, alimony no longer impacts federal taxes for either party. This change simplified tax filing but altered negotiation strategies during divorce settlements. Because tax laws can be complex and subject to change, individuals dealing with alimony should seek professional tax advice to ensure compliance and avoid costly mistakes.