Is alimony income taxable?

Yes, alimony income is taxable in Delaware. According to the Internal Revenue Service (IRS), alimony received is generally included in an individual’s gross income and is taxable. The federal Tax Cuts and Jobs Act of 2017 changed the tax treatment of alimony specified in agreements entered after December 31, 2018. For agreements entered in Delaware prior to 2019, alimony is taxable to the recipient and deductible by the payer. However, for agreements entered into after December 31, 2018, alimony income is no longer taxable, and payments are not deductible. In Delaware, alimony is taxable to the recipient for the entire amount received, regardless of how it is characterized or designated in a court order or separation agreement. When an individual files their income tax return for that year, they may be able to deduct alimony payments from their taxable income if the agreement meets certain conditions and is recorded in the form of a written agreement or court order. In addition, if an individual is receiving alimony in Delaware, they may be responsible for paying a portion of self-employment taxes. This applies when the payments received are classified as earned income. Ultimately, it is important to consult with a tax consultant or attorney to discuss the specific details of your alimony agreement and to ensure you fully understand your tax obligations.

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Is alimony income taxable?

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