Beginning January 1st, 2019, alimony is non-taxable to the recipient spouse and non-deductible to the payor spouse, meaning, it will be net income to the recipient spouse, and the payor spouse will not be able to deduct his/her alimony payments when filing his/her taxes.
This is an important consideration when negotiating a marital settlement agreement. Since alimony is based on need and ability to pay, the fact that the recipient spouse is receiving a net amount, whatever amount he/she receives will go a longer way to help satisfy his/her need for support.
