Are alimony payments deductible for both spouses in some states?

Yes, alimony payments are deductible for both spouses in some states, including Washington. Alimony payments may be deducted from the income of the paying spouse and must be included in the taxable income of the receiving spouse. This means that both the paying spouse and the receiving spouse are affected by this rule. In Washington, alimony payments are deductible from the gross income of the paying spouse, as long as the payments are made pursuant to a written agreement or court order. This deduction reduces the paying spouse’s taxable income, resulting in lower taxes. At the same time, alimony payments are considered taxable income for the receiving spouse, meaning they must be reported and taxes must be paid on them. In addition to Washington, alimony payments are deductible for both spouses in some other states, including New York and California. If the spouses live in a state that permits deductibility, they should clearly state in their written agreement or court order that the payments are alimony and not something else, such as child support or a loan. This ensures that both spouses know the payments are alimony and are eligible for deductibility or taxation.

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Are alimony payments deductible for both spouses in some states?

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