Is alimony taxable to the payor in some states?

Yes, alimony is taxable to the payor in some states. In Nebraska, alimony is considered to be a taxable income for the payor. According to Nebraska Revised Statute Section 77-3114, “All payments made pursuant to an order of spousal support or of alimony shall be taxable income to the payor and deductible to the payee.” The payor must report the alimony on their federal income tax return as income. The payee may deduct the alimony as an adjustment to their income on their federal income tax return. Whenever alimony is paid in Nebraska, the payor must also submit an Alimony Paid Affidavit and Form W-9 to the Nebraska Department of Revenue. The affidavit must include the payee’s name, address, and Social Security number. This information is necessary so that the state can properly track alimony payments for taxation purposes. Alimony payments can be modified, suspended, or terminated in some cases. However, this will not change the fact that it is still an alimony payment and the payor will be subject to taxation on the payment. It is important for both payor and payee to keep accurate records of the alimony payments so that there are no disputes or errors when filing taxes.

Related FAQs

What are the factors that are considered when awarding alimony?
What happens if the payor moves out of the country?
Does alimony have to be paid if the payor is unemployed?
Can alimony be awarded if the couple was never married?
How is alimony calculated?
Is alimony taxable to the payor in all states?
Is alimony revoked if the payor declares bankruptcy?
Is alimony reduced if the payor earns less than the recipient?
What are the different types of alimony?
Are alimony payments considered earnings for Social Security purposes?

Is alimony taxable to the payor in some states?

Related FAQs

Related Blog Posts