Are spousal support payments taxable?

In Washington, spousal support payments are generally not considered taxable income. The Internal Revenue Service does not require the recipient of spousal support to report it as income, and the payor is not allowed to deduct payments from their taxes. However, if the spousal support payments are court ordered, stipulated in the terms of a separation agreement, or part of a divorce decree, the payments may be considered taxable income for the payee and deductible for the payor. To make this distinction, the money must be labeled as “spousal support” in the divorce decree. The IRS allows the payor to deduct spousal support payments as an “above-the-line” deduction, meaning the payment can be deducted whether or not the payor itemizes deductions on their tax return. It is important to note, however, that the tax treatment of spousal support payments can vary from state to state. To ensure that spousal support payments are handled correctly, both the payor and the recipient should consult a qualified tax professional to make sure the payments meet the requirements of the state and federal tax laws.

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Are spousal support payments taxable?

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