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

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