Tax Tips – Is It Tax Deductible? – Alimony

Tax TipsLearn tax tips so you will be informed and can save money on taxes!

Question – Is Alimony Tax Deductible?

Example – You are paying alimony to your ex-spouse and need a break. Is alimony tax deductible?

Answer – True or False?

 

The answer is TRUE.

You can deduct alimony you pay an ex-spouse, even if you don’t itemize. To qualify as alimony, the cash-only payments must be spelled out in your divorce agreement. You’re required to report the Social Security number of your ex-spouse, too, so the IRS can make sure he or she reports the alimony as taxable income.Alimony

 

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