Tax Tip #189

The Tax Cuts and Jobs Act (TCJA) changed the taxation of alimony. For any divorce or separation instrument executed after 12/31/18, TCJA repealed the deduction for alimony payments as well as the inclusion of alimony payments received. 

This does not imply that all states follow the change made by the TCJA. Among the states that still tax alimony received and permit a deduction for alimony paid are: NJ, NY, CA and AR.