Are alimony payments nontaxable to the payor in all states?

No, alimony payments are not nontaxable to the payor in all states. In California, for example, alimony payments are taxable to the payor and deductible to the receiving spouse, so long as certain conditions are met. These conditions include that the alimony payments must be made in cash or cash equivalent, such as a check or money order, and the court order must not state that the payments are not actually alimony. Additionally, the court order must not designate that the payments are to be treated as something other than alimony, such as child support payments. It is important to note that alimony payments may also be taxable to the payor in other states, so it is best to check with a local family law attorney to make sure one is in compliance with their state’s laws.

Related FAQs

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