Are alimony payments taxable to the recipient?

In Hawaii, alimony payments are generally taxable to the recipient. This means that the recipient must declare the alimony income on their annual income tax return. However, if the payment is considered "non-taxable," then the recipient may not have to include this income on their tax return. In addition, it is important to note that alimony payments are generally deductible for the payer. This means that the payer can deduct the alimony payments on their taxes as an “above the line” expense. The deduction can be taken for all payments made in the tax year, and does not limit the total amount of alimony payments that can be deducted. In Hawaii, the calculation of alimony payments is governed by the state’s alimony laws, and the terms of the parties’ divorce decree. There are a number of factors which the court considers when determining alimony payments. These include each party’s income, the length of the marriage, the lifestyle enjoyed during the marriage, and the contributions each party made to the marriage. As tax laws are complex and ever-changing, it is important to consult a qualified tax professional when attempting to determine the taxable versus non-taxable status of alimony payments in Hawaii.

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Are alimony payments taxable to the recipient?

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