Are alimony payments nontaxable to the payor in all states?

No, alimony payments are not nontaxable to the payor in all states. In Nebraska, alimony payments are generally taxable to the payor and nontaxable to the recipient. According to the Nebraska revenue department, alimony payments must be declared as income when filing taxes. For alimony to be considered nontaxable, the payments must be made as part of a court-approved divorce decree and meet the criteria for a "qualified domestic relations order." The specific criteria in Nebraska for a qualified domestic relations order are that the payments must be specifically designated as alimony, must be made pursuant to a written agreement or court order, must be made in cash, and must be received by the payee within the legal jurisdiction of the United States. Additionally, payments must terminate if the payee dies or remarries. Alimony can be a complicated area of law to navigate, and spouses considering a divorce should consult with a qualified attorney. In Nebraska, both spouses should be aware of the tax implications of any agreement. An experienced attorney can help draft an agreement that meets the requirements for tax-exempt alimony and ensure that both spouses’ rights and interests are protected.

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Are alimony payments nontaxable to the payor in all states?

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