Where Does Alimony Go on Form 1040?

How you report alimony on your Form 1040 federal tax return is determined by the date of your divorce or separation agreement. A change in tax law altered the rules, making the execution date of your legal agreement the deciding factor. This distinction governs whether the person paying alimony can take a deduction and whether the person receiving it must report it as income.

Determining if Alimony is Taxable or Deductible

The tax treatment of alimony hinges on the execution date of the divorce or separation instrument. For any agreement finalized after December 31, 2018, the rules established by the Tax Cuts and Jobs Act (TCJA) apply. Under the TCJA, alimony payments are not deductible for the payer. Consequently, the recipient does not include these payments in their taxable income, and these payments are not reported on Form 1040 at all.

For agreements executed on or before December 31, 2018, the previous tax rules remain in effect. Under these older regulations, the payer can deduct the full amount of alimony paid as an adjustment to their income. This deduction is available even if you do not itemize deductions. The spouse who receives the payments must report them as taxable income.

If a divorce or separation agreement from 2018 or earlier is modified after 2018, the new tax rules may apply. This happens if the modification document explicitly states that the TCJA rules should apply to the updated agreement. If the modification is silent on this matter, the original tax treatment continues, with payments remaining deductible for the payer and taxable to the recipient.

How to Report Alimony on Form 1040

If your alimony payments are governed by pre-2019 rules, you must report them on Form 1040. You need the total alimony paid or received during the tax year and your former spouse’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). The IRS uses this to match the payer’s deduction with the recipient’s reported income. Failure to provide the correct SSN or ITIN can result in penalties.

The person paying alimony claims the deduction on Schedule 1 of Form 1040, “Additional Income and Adjustments to Income.” You will enter the total alimony paid on the line for “Alimony paid” and must enter the recipient’s SSN or ITIN on the corresponding line. The IRS may disallow your deduction if this information is missing or incorrect, and a $50 penalty could be assessed.

The recipient must report the payments as income on Schedule 1 of Form 1040, entering the total on the line for “Alimony received.” You are required to provide your SSN to your former spouse; failing to do so can lead to a $50 penalty. Both parties must also enter the date of the original divorce or separation agreement on the appropriate line of Schedule 1.

Distinguishing Alimony from Other Payments

It is important to differentiate alimony from other payments required under a divorce decree, as their tax treatments differ. Child support is never deductible by the payer, nor is it considered taxable income for the recipient. These payments should never be categorized as alimony on a tax return.

Payments that are part of a property settlement are distinct from alimony. A property settlement is the division of assets between spouses and is not a taxable event, meaning payments are not deductible by the payer or reported as income by the recipient. The divorce or separation instrument should clearly define which payments are for spousal support (alimony) versus those intended for child support or property division.