Is alimony income taxable?

Yes, in New York, alimony is taxable income. According to the IRS, any payment made from one spouse to another pursuant to a divorce or separation agreement is considered taxable alimony income to the person receiving the payments. This means that the person receiving the payments must claim alimony as income on their taxes and the person making the payment can deduct the payments from their taxes. In New York, the court may also order a spouse to pay alimony on a periodic basis, which is known as periodic alimony or maintenance. This type of alimony is usually taxable to the recipient and deductible by the payer. In New York, the court is also permitted to make a one-time payment to the recipient spouse, known as a lump-sum alimony or property distribution. This payment is also taxable income to the recipient and deductible to the payer. It should also be noted that certain types of payments made through alimony can be excluded from taxation if properly structured and agreed to by the parties. It is highly recommended to seek the assistance of a qualified attorney to ensure the alimony agreement is properly structured and meets all legal requirements.

Related FAQs

Are alimony payments considered a marital debt?
What happens to alimony if the payor dies?
Is alimony income taxable?
Can alimony be reduced if the recipient earns a substantial income?
Can alimony be altered or revoked?
Is alimony taxable to the recipient in some states?
Is alimony subject to garnishment?
Is alimony revoked if the payor declares bankruptcy?
Can alimony be waived in a divorce settlement?
Can a court award retroactive alimony payments?

Is alimony income taxable?

Related FAQs

Related Blog Posts