Is alimony income taxable?

In Texas, alimony is considered taxable income for the recipient and is required to be reported on the yearly tax returns. The payer is also able to claim the alimony payments as a deductible expense, which means they lower their taxable income by the amount they paid. The Tax Cuts and Jobs Act of 2017 changed the way alimony income is taxed, meaning alimony payments made on or after January 1, 2019 are no longer deductible for the payer nor taxable income for the recipient. Alimony payments made prior to this date are subject to the old rules. It is important to note that alimony is not always the same in every divorce. It is possible for a recipient to receive both taxable and tax-free portions of alimony. If this is the case, the recipient should report the taxable portion and the payer can deduct the amount paid in taxes. It is important to consult a qualified divorce attorney for any specific questions about alimony law in Texas, as laws can change depending on a variety of factors. The attorney should be knowledgeable about the current laws so that you can make an informed decision that suits your individual situation.

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Is alimony income taxable?

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