Yes, but only if your divorce was issued in 2018 or before. For divorces that occurred in 2018 or earlier, alimony is considered taxable income to the recipient. However, it is also tax-deductible for the payer with these laws. All new alimony taxable laws apply to divorces that were finalized during 2019 and later. The Tax Cuts and Jobs Act (TCJA) is responsible for eliminating the alimony deduction for taxes from 2019 through at least 2025. These new rules apply for most divorce agreements entered into during that time. We will review the top differences between the old and new rules, so you know what to do.
Is Alimony Taxable For 2019 Divorcees?
No, these alimony payments fall under the new tax guidelines beginning in 2019. With the new regulations, individuals paying alimony are no longer able to deduct their payments. On the other hand, the recipient no longer has to pay taxes on the alimony income. These changes alter the way that divorcees can plan for retirement, so it’s vital to have some guidance regarding your alimony payments.
How To Report Alimony On Your Colorado Taxes
(applies only to those divorced in 2018 or earlier)
For your tax purposes, alimony is sometimes referred to as “separate maintenance.” This is the income you receive when you are legally separated but not yet divorced. It does not include:
What Alimony Does Not Include:
- Child Support
- Community Property Income
- Temporary Support Order Payments
Tip: If you paid alimony for your divorce that was issued in 2018 or before, you could claim the deduction on your taxes. All 2019 and later divorces will not qualify for this deduction.
Report Alimony as a Deduction
(applies only to those divorced in 2018 or earlier)
If you have paid out alimony or the separate maintenance payment to your ex-spouse, it’s vital that you report it on your taxes. Simply enter the total contribution on your Form 1040 with your ex-spouse’s Social Security number. With this information, the IRS knows who received the money, which allows the agency to enforce the declaration from the individual receiving alimony.
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Divorce Lawyer
There’s no reason to navigate through a divorce on your own. With all the alimony and child support laws, there’s a lot to remember. If you don’t know what the regulations are, you could easily miss something important. That’s why you must consult with Thomas Ramunda Jr. at South Denver Law before moving forward. Thomas Ramunda has more than 25 years of experience helping families just like yours. He knows how to create agreements that respect each party.
Parker, CO
You can visit South Denver Law at the Parker/Main Office location. We are located at 19590 E. Mainstreet, Suite 103, Parker, CO 80138. Call 303.840.2700 to schedule your appointment today.
Denver, CO
We also have a Denver, Colorado location. If you prefer to visit us at the Denver Tech Center, you can find our staff at 4610 Ulster Street, Suite 150, Denver, Colorado 80237. Call 303.840.2700 to schedule your consultation today.
