Are alimony payments taxable to the recipient?

In California, alimony payments are considered taxable income to the recipient. This means that the recipient must declare the alimony payments as income on their tax return, and must pay taxes on the payments received. Alimony payments are generally not taxable to the payor, meaning that the person paying the alimony does not have to declare the payments on their tax return. In California, alimony payments considered to be part of a divorce agreement are classified as “separate support or maintenance” for tax purposes. This means that the person receiving the alimony payments must declare the payments as taxable income on their tax return. The payor does not have to report the alimony payments. Alimony payments in California may also be structured as periodic payments or lump sum payments. Periodic payments are generally considered to be taxable to the recipient, while lump sum payments are generally non-taxable. This is because lump sum payments are structured to be a one-time payment instead of ongoing monthly payments. California law also states that the person paying the alimony may be able to deduct the payments made from their taxable income. This is provided that the payments are made to a former spouse, and are made as part of a divorce agreement. In summary, alimony payments in California are taxable to the recipient but not to the payor. Depending on the terms of the divorce agreement, the payor may be able to deduct the payments from their taxable income.

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Are alimony payments taxable to the recipient?

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