Is alimony taxable to the recipient in some states?

Yes, alimony is taxable to the recipient in some states, including Oklahoma. According to the Oklahoma Tax Commission, alimony received by an Oklahoma resident is considered taxable income. For Federal income tax purposes, the party making alimony payments can deduct alimony payments from their gross income. However, the recipient of those payments must report the alimony as taxable income on their Federal income tax return. The Oklahoma Tax Commission also states that alimony can be used to determine eligibility for certain tax credits and deductions for both the payor and the recipient. When alimony payments are made, it is important to keep careful records and consult a professional to ensure compliance with both Federal and state tax laws. Additionally, the Federal Tax Reform Act of 2017 changed the tax laws regarding alimony payments. As of January 1, 2019, alimony payments are no longer considered taxable income for the party receiving the payments. This change only applies to divorces and separation agreements that were finalized in 2019 or later. To ensure compliance with both Federal and Oklahoma state tax laws, it is important to consult a professional and keep careful records of all alimony payments. With the new rules in effect, it is especially important to understand the tax implications for both the payor and recipient of alimony payments.

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Is alimony taxable to the recipient in some states?

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