Can I Deduct Alimony Payments?

Whether alimony is deductible depends entirely on when your divorce or separation agreement was finalized. For divorce agreements executed before January 1, 2019, the person paying alimony can deduct those payments and the recipient must report them as income. For divorce agreements finalized on or after January 1, 2019, the rules changed completely. Under the new rules, alimony payments are no longer deductible for the payer and are no longer considered income for the recipient. If your pre-2019 divorce agreement is modified after 2018 and the modification specifically states that the new rules apply, the deduction goes away as well.