Is alimony taxable to the payor in some states?

Yes, alimony is taxable to the payor in some states, including Hawaii. When a court orders an individual to pay alimony to their former spouse, the alimony payments become taxable income to the payor. The federal government and many states, including Hawaii, also consider alimony payments to be taxable income for both the payor and the recipient. Under the Internal Revenue Code, alimony is considered a form of “income” for the recipient and is subject to federal income taxes. Additionally, in Hawaii, alimony payments are generally taxable to the payor, as they are considered a form of “income” for the payor. The payor can then deduct the alimony payments from their taxable income on their state tax returns. The recipient, however, is not taxed on the alimony payments they receive. This is because alimony is considered a form of “income” under the Internal Revenue Code, and so the recipient is not taxed on this type of income. Instead, the recipient only pays taxes on the income they earn from other sources. In Hawaii, even though alimony payments are taxable for the payor, the state does not require either the payor or the recipient to report the payments on their tax returns. This is because the court order usually states the alimony payment amount, and this is sufficient for the federal government and the state of Hawaii to determine the taxable status of the alimony payments.

Related FAQs

Is alimony enacted differently in each state?
Is alimony reduced if the payor earns less than the recipient?
Is alimony revoked if the payor declares bankruptcy?
Is alimony modified if the recipient becomes self-supporting?
Is alimony awarded if the recipient moves to a different state?
Is alimony awarded in divorce proceedings involving military personnel?
Is alimony considered a form of child support?
Is alimony paid in perpetuity or for a fixed period of time?
How long must a marriage last to qualify for alimony?
Is alimony based on need or fault?

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