Is alimony taxable to the payor in some states?

Yes, alimony is taxable to the payor in some states, including Delaware. According to the Delaware Family Court, when alimony is awarded, it is taxable to the payor and deductible from the recipient’s taxable income. This means that the payor must include the alimony in their total taxable income for the tax year in which the alimony was paid or deemed paid. The recipient must report the alimony as taxable income and must pay taxes on any alimony payments that exceed what they spend on qualified legal fees. Alimony payments that are received by the recipient are not subject to FICA, or Social Security and Medicare taxes. In Delaware, there are some circumstances in which alimony payments are not taxable to the payor. These include payments that are: designed to provide for a dependent’s health insurance; awarded in exchange for property; or reduced due to disability or death. Additionally, there are certain tax deductions that can be taken by the payor, such as legal fees for any alimony or divorce proceedings, court costs, or other related expenses. Overall, alimony is taxable to the payor in some states, including Delaware. The tax consequences of alimony payments should be taken into consideration when making an agreement, as it can have a major effect on the payor’s financial situation. It is important to review all applicable state and federal laws prior to making any final decisions about alimony payments.

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Is alimony taxable to the payor in some states?

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