Is alimony taxable to the recipient in some states?

Yes, alimony is taxable to the recipient in some states, including Washington. According to the Washington State Department of Revenue, if alimony is required to be paid to a spouse or former spouse under a court order or decree of dissolution, legal separation, or support, then it is considered taxable income. This includes temporary maintenance, rehabilitative alimony, and periodic payments. The tax implications of alimony payments can depend on how the judge assigns the payment. If the judge does not make the appropriate designation, then the payment is not considered alimony for tax purposes. In order for the payment to be taxable to the recipient, the divorce decree must clearly state that the payment is alimony, and the payment must end when the recipient dies. Additionally, the payment must legally be made with cash or cash equivalents, must not be designated as part of a property settlement, and must not be an amount used to cover the payment of medical expenses, taxes, or some other purpose. If the payment meets these criteria, then it is considered alimony and is taxable to the recipient. The recipient must include this amount on their Form W-2 and pay taxes on the income. The payer is not required to pay taxes on the amount of money given to the recipient as alimony.

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Is alimony taxable to the recipient in some states?

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