Is alimony taxable for US expats? Federal rules explained

For the 2025 tax year filed in 2026, federal treatment turns on the date of the divorce or separation instrument. Agreements executed after December 31, 2018 use the newer rule, while qualifying older agreements can still follow the pre-2019 rule.

For US citizens and resident aliens abroad, living overseas does not replace this federal date test. State treatment can differ, and a former spouse who is a nonresident alien can create separate issues for property transfers or withholding.

Tax pain & alimony payments for US expats

For 2025 federal returns, agreements signed before January 1, 2019 can keep the old rule. Agreements signed after December 31, 2018 make payments nondeductible to the payer and excluded from the recipient’s income. Living abroad does not change this cutoff for Form 1040 filers.

The following 2 rules show the federal result for each side:

• Payer: A qualifying pre-2019 payment can be deductible; a post-2018 payment is not.
• Recipient: A qualifying pre-2019 payment is income; a post-2018 payment is excluded.

Key cutoff – January 1, 2019: The execution date of the divorce or separation instrument controls, unless a later modification expressly adopts the newer federal treatment.

The IRS rules for alimony, child support, and court awards apply to US federal returns even when a taxpayer lives abroad.

A US citizen in France with a 2017 decree still applies the pre-2019 federal rule to qualifying payments. See how US expat taxes work when foreign residence and US filing overlap.

The federal result does not settle every state question. Review state taxes and American expats if you kept domicile or filing ties to a state.

What is alimony?

For federal tax purposes, alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. For pre-2019 instruments, the payment must also meet IRS conditions covering cash payment, separate households, death of the recipient, and child support.

The following 4 distinctions show what the term usually includes and excludes:

• Alimony: Cash support required by a qualifying divorce or separation instrument.
• Separate maintenance: Court-ordered support while spouses remain legally separated.
• Child support: A payment fixed for a child, not alimony.
• Property settlement: A transfer dividing marital property, not an alimony payment.

NOTE! Alimony is qualifying support paid under a divorce or separation instrument; it is separate from child support and property division.

The 2025 IRS Publication 504 explains the federal requirements and the special rules for instruments executed before 2019.

Divorce can also change names and filing status. See the TFX guide to changing your name with the IRS after marriage for related record updates. If your spouse or former spouse is not a US citizen, understand filing status with a foreign spouse before preparing Form 1040.

These 4 categories are separated by what the payment is for and whether it can qualify as support.

Alimony vs. child support vs. property settlement

For 2025, these 3 payment types are different. Alimony follows the agreement-date rule, child support is never deductible or income, and property transfers incident to divorce usually create no immediate gain or loss, subject to exceptions including transfers to a nonresident alien spouse.

Alimony is support between spouses or former spouses. Child support is fixed for a child, while a property settlement divides assets or liabilities between the spouses.

So, is child support taxable income? No. The IRS treats child support as neither taxable income to the recipient nor a deduction for the payer.

Parents should keep support payments separate from tax benefits tied to a qualifying child. Review the Child Tax Credit for US taxpayers abroad for a different set of eligibility rules.

The date rule applies to alimony, child support stays tax-neutral, and property transfers need a separate §1041 review.

 

For expats, property transfers deserve extra care because IRC §1041 has an exception for transfers to a nonresident alien spouse or former spouse. A US tax treaty may also affect other cross-border income items.

Is alimony tax deductible?

For a 2025 federal return, the answer is yes only for qualifying payments under an instrument executed before January 1, 2019. For instruments executed after December 31, 2018, the payer cannot deduct the payment, and the recipient does not include it in income.

The following 2 federal outcomes apply to the payer and the recipient:

• Old rule: The payer may claim an alimony deduction, and the recipient reports qualifying income.
• New rule: The payer gets no deduction, and the recipient reports no federal income from the payment.

An alimony tax deduction is an above-the-line adjustment for qualifying old-rule payments; it is not an itemized deduction.

The same date rule governs tax deductions for spousal support that qualifies as alimony under an older instrument. Deducting alimony also requires the payment to satisfy the old-law federal conditions.

Based on our client scenario at TFX: A payer sends $24,000 during 2025 under a qualifying 2017 decree. The payer may deduct $24,000, while a payer making the same amount under a 2020 decree gets no federal deduction.

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The date of divorce matters

For federal purposes, 1 date drives the main rule: January 1, 2019. Instruments executed before that date can retain the prior treatment, while instruments executed on or after that date use the nondeductible, nontaxable treatment unless another old instrument controls.

So, when did alimony become non taxable? The federal change applies to divorce or separation instruments executed after December 31, 2018.

The following 3 branches identify the rule that usually applies:

• Before January 1, 2019: Check whether the payment meets all old-rule alimony conditions.
• On or after January 1, 2019: No federal payer deduction and no recipient inclusion.
• Modified after 2018: Read the amendment to see whether it expressly adopts the newer treatment.

The following 3 document dates should be checked before choosing a branch:

• Original divorce decree date.
• Written separation or separate-maintenance instrument date.
• Date and wording of any later amendment.

A payment year does not reset the agreement date. If you are reconstructing older returns, see how to file back taxes for multiple years.

Cross-border payments also need the correct year and currency record. Review timing of foreign income and taxes when amounts were paid or received abroad.

 

How to tell if your agreement is pre-2019 or post-2018

Start with 3 records: the original decree, any written separation instrument, and every later amendment. A document signed before January 1, 2019 can remain under the old rule, but a post-2018 modification can switch treatment if it expressly adopts the newer federal rule.

The following 3 checks determine which date matters:

• Find the execution date on the original divorce decree or separation instrument.
• Identify every amendment signed after December 31, 2018.
• Read whether an amendment expressly states that the post-2018 treatment applies.

Use this 2-step yes/no flow:

• Was the controlling instrument executed after 2018? Yes – use the new federal treatment.
• Was an older instrument later modified to adopt the new treatment expressly? Yes – use the new rule from the modification as provided.

If both answers are no, qualifying payments can remain under prior law. For the wider filing picture, review US expat tax returns.

Alimony (or separate maintenance) taxation

For 2025, qualifying support under a pre-2019 instrument is included by the recipient and deductible by the payer. Under a post-2018 instrument, neither result applies federally. Separate maintenance follows the same date-based federal treatment when the payment meets the applicable rules.

Is spousal support taxable? It depends on the controlling instrument. Qualifying old-rule support is taxable to the recipient; post-2018 support is not included in federal gross income.

How is alimony taxed? Under the old rule, the recipient includes qualifying payments in income and the payer may deduct them. Under the new rule, neither federal entry applies. A recipient does for qualifying pre-2019 payments, but not for payments governed by the post-2018 federal rule.

The 2019 cutoff determines both recipient income and payer deduction treatment for 2025.

 

State treatment can differ from federal law. Understand whether expats have to pay state taxes before assuming the federal result controls a state return.

For old-rule taxable payments to a nonresident alien spouse, a US citizen or resident payer may face 30% federal withholding unless an income tax treaty provides an exemption.

Need help applying the correct agreement date to your 2025 filing?

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What qualifies as alimony?

For an instrument executed before January 1, 2019, a payment must satisfy 7 core federal conditions to receive old-rule treatment. The spouses cannot file jointly, the payment must be cash, and the obligation cannot continue after the recipient’s death, among other tests.

The following table covers the 7 core conditions for old-rule payments.

A pre-2019 payment fails old-rule alimony treatment if any required condition is not met.

 

The Form 1040 guide explains where adjustments flow on the return.

How are alimony payments calculated? Federal tax law does not set the payment amount. A court order or agreement determines the amount under applicable domestic-relations law; federal rules decide only whether the payment receives alimony treatment.

Based on our client scenario at TFX: A 2018 decree requires $2,000 monthly cash support and ends the duty at death. If all 7 tests are met, $24,000 paid in 2025 passes. If the decree instead requires payments to the recipient’s estate, it fails.

Examples: taxable vs. non-taxable alimony scenarios

Three 2025 scenarios show how the instrument date and amendment language change the federal result. A qualifying 2017 decree can keep the old rule, a 2020 decree uses the new rule, and a 2017 decree modified after 2018 changes only if the amendment expressly adopts it.

The following 3 examples show the main outcomes:

1. 2017 decree: $18,000 of qualifying 2025 support is deductible by the payer and included by the recipient.
   Takeaway: The original pre-2019 rule remains.
2. 2020 decree: $18,000 paid in 2025 gives the payer no federal deduction and creates no recipient income.
   Takeaway: The post-2018 rule applies.
3. 2017 decree modified in 2025: The amendment expressly adopts the newer treatment starting June 1.
   Takeaway: Payments from that effective point follow the new rule.

State tax treatment of alimony (can differ from federal)

Federal treatment for 2025 does not guarantee the same state result. A state can conform to the federal 2019 cutoff, use a different rule, or impose filing duties based on domicile, residency, or source rules, so the relevant state authority must be checked for the tax year.

Warning: Do not copy the federal result onto a state return without checking that state’s 2025 law and filing instructions.

Use the following 3-row review template for each state connection:

A state return needs its own conformity check even when the 2025 federal treatment is clear.

How modifications to pre-2019 agreements impact alimony taxation

A pre-2019 instrument modified after December 31, 2018 does not switch rules automatically. The new treatment applies only if the amendment expressly adopts the repeal. Without that language, qualifying payments generally stay deductible to the payer and taxable to the recipient.

The following 2 examples show the difference:

• No express adoption: A 2016 decree is amended in 2025 only to increase monthly support. The old federal treatment remains.
• Express adoption: A 2016 decree is amended in 2025 and states the post-2018 rule applies. Payments covered by that change use the new treatment.

The following 3-step check should be completed before filing:

• Identify the original instrument’s execution date.
• Read the amendment’s effective date and operative language.
• Confirm whether it expressly adopts the post-2018 federal treatment.

Why is alimony no longer deductible? The Tax Cuts and Jobs Act repealed the federal deduction for instruments executed after 2018 and for qualifying older instruments later modified to adopt that treatment.

Small drafting changes can change the tax result. If an amendment changed your reporting, consider reviewing your expat tax return.

Changed an older divorce agreement and unsure whether your 2025 filing followed it?

Check my tax return

When the new tax rules apply

The new federal rules apply to 2 groups: instruments executed after December 31, 2018, and older instruments modified after 2018 when the modification expressly adopts the repeal. In either case, the payer has no deduction, and the recipient has no federal income inclusion.

Cutoff: January 1, 2019 is the key execution date for the new rule.

The following 3 federal effects apply:

• No payer deduction for covered payments.
• No recipient income inclusion for covered payments.
• No alimony amount is entered on Schedule 1 for those covered payments.

Applies if: Your instrument is post-2018, or a qualifying later amendment expressly adopts the new treatment.

When the old tax rules remain

The old federal rules remain for qualifying payments under an instrument executed before January 1, 2019, unless a later modification expressly adopts the newer treatment. For 2025, that can still mean a payer deduction and recipient income even though the payment occurs 6 years after 2018.

The following 2 conditions remain paired under the grandfathered rule:

• Still deductible: The payer meets the old-rule requirements for a qualifying payment.
• Still taxable: The recipient includes the same qualifying payment in federal income.

Based on our client scenario at TFX: A 2018 decree was amended in 2025 only to change the payment date. Because the amendment did not expressly adopt the new rule, qualifying payments continue under prior federal treatment.

If older returns used the wrong rule, see when filing back taxes as an expat may be relevant.

Why this matters

Using the wrong rule on a 2025 return can change adjusted gross income, the payer’s deduction, or the recipient’s taxable income. It can also lead to a mismatch with Schedule 1, a notice, or an amended return when a pre-2019 payment was omitted or deducted incorrectly.

The following 3 filing consequences matter most:

• Payer: An incorrect deduction can understate federal income and tax.
• Recipient: Missing old-rule income can understate federal gross income.
• Expat: State, foreign-currency, and cross-border record issues can complicate corrections.

Does alimony count as income? It does for recipients of qualifying payments under pre-2019 instruments. It does not for payments governed by the post-2018 federal rule.

How to avoid paying taxes on alimony means applying the rule that legally governs the instrument, not relabeling a payment. A post-2018 recipient excludes covered payments; an old-rule recipient generally reports qualifying payments unless a valid modification changes treatment.

Before filing, use the following 3-point check:

• Confirm the controlling instrument date.
• Separate alimony from child support and property transfers.
• Match the federal treatment to the correct Schedule 1 lines.

If a balance results after correcting an old-rule payment, review what to do if you cannot pay tax on time.

Skipping a required return creates a separate problem. See the consequences if you do not file an expat tax return.

How to report alimony for my taxes?

For a 2025 Form 1040, qualifying pre-2019 recipients use Schedule 1, line 2a, and enter the original agreement date on line 2b. Qualifying payers use line 19a, the recipient’s SSN on 19b, and the original agreement date on 19c for 2025.

Filing taxes after divorce starts with the instrument date, not the payment date. The IRS’s taxable income guidance explains that taxable income can include income beyond wages.

So, where is alimony reported on Form 1040? Old-rule amounts are reported through Schedule 1 attached to Form 1040: recipients use line 2a, while payers use line 19a.

The following 4 filing steps apply to qualifying old-rule payments:

• Confirm the instrument is governed by the pre-2019 rules.
• Total the qualifying amount paid or received during 2025.
• Enter the amount and required identifying details on Schedule 1.
• Retain the decree, amendments, and proof of payment.

For 2025, recipients use line 2a, and payers use line 19a only for payments that remain under the old federal rule.

 

For other federal forms that can accompany an expat return, see the US tax forms for expats guide.

Reporting for divorces finalized pre-2019

For a qualifying pre-2019 instrument, the 2025 recipient reports taxable support on Schedule 1, line 2a, while the payer reports the deduction on line 19a. The payer also enters the recipient’s SSN on 19b, and both sides identify the original agreement date.

The following 4 old-rule steps keep both sides aligned:

1. Total qualifying 2025 payments.
2. Recipient reports the amount on Schedule 1, line 2a.
3. Payer reports the deductible amount on Schedule 1, line 19a.
4. Keep the original instrument, amendments, and payment evidence.

Based on our client scenario at TFX: A 2018 decree produces $30,000 of qualifying payments in 2025. The recipient reports $30,000 on line 2a, and the payer deducts $30,000 on line 19a if all old-rule requirements are met.

See the tax documents checklist for records that support a US return.

 

Receiver

A recipient under a qualifying pre-2019 instrument includes the 2025 payment in federal income; a recipient under a post-2018 instrument does not. For old-rule reporting, Schedule 1 line 2a carries the amount and line 2b identifies the original agreement date.

A recipient must give the payer an SSN or ITIN for old-rule reporting. Failing to provide it can trigger a $50 penalty.

The following 3 recipient checks apply:

• Confirm the instrument date and any modification language.
• Separate child support from qualifying support received.
• Keep payment records and the controlling instrument.

Does spousal support count as income? Yes, for qualifying payments governed by the pre-2019 rule. No for payments governed by the post-2018 rule.

Based on our client scenario at TFX: A recipient receives $1,500 per month under a qualifying 2018 decree for all 12 months of 2025. The $18,000 total is included on Schedule 1, line 2a.

Payer

A payer can deduct qualifying 2025 payments only under the grandfathered pre-2019 rules. Schedule 1 line 19a carries the deduction, line 19b asks for the recipient’s SSN, and line 19c asks for the original agreement date; post-2018 payments are not deducted.

For old-rule reporting, a missing recipient SSN or ITIN can cause the deduction to be disallowed and can trigger a $50 penalty.

The following 4 payer checks apply:

• Confirm the instrument was executed before January 1, 2019.
• Confirm the payment meets the old-law federal conditions.
• Keep proof of payment and the governing instrument.
• Enter the recipient’s SSN or ITIN when required.

Who pays taxes on alimony? Under the old rule, the recipient includes qualifying payments in income while the payer may deduct them. Under the new rule, the recipient has no federal inclusion and the payer has no deduction.

Based on our client scenario at TFX: A payer makes $12,000 of qualifying payments under a 2018 decree. The payer enters $12,000 on Schedule 1, line 19a and supplies the required recipient information.

Reporting for divorces finalized post 2019

For instruments executed after December 31, 2018, the 2025 federal return has no payer deduction and no recipient income inclusion for alimony or separate maintenance. The same treatment applies to qualifying older instruments modified after 2018 when the amendment expressly adopts the repeal.

For post-2018 instruments, neither side reports an alimony amount on the 2025 federal Schedule 1.

The following 2 federal non-reporting rules apply:

• Payer: Do not claim the payment on Schedule 1, line 19a.
• Recipient: Do not report the payment on Schedule 1, line 2a.

State law can still differ, so check the rules for any state return you must file.

Common reporting mistakes to avoid

Four mistakes account for the main federal reporting errors in this area: using the payment year instead of the instrument date, mixing child support with alimony, overlooking amendment language, and losing the records needed to support a Schedule 1 entry or correction.

The following 4 mistakes should be checked before filing:

• Using 2025 as the controlling date instead of the original instrument date.
• Treating child support or a property transfer as alimony.
• Missing a post-2018 amendment that expressly changes the tax treatment.
• Failing to retain the decree, amendment, or proof of payment.

If you already filed, review whether Form 1040-X may be needed to correct an expat return.

The IRS Form 1040-X mailing-address page currently labels its table for calendar year 2025. If mailing in 2026, verify the latest Form 1040-X instructions first.

Bonus – What is a recapture rule?

The alimony recapture rule applies only to old-rule payments and tests a 3-year period that starts with the first year a qualifying payment is made. It can reverse part of an earlier deduction when payments fall sharply, including when year 3 drops by more than $15,000 from year 2.

The IRS also tests whether payments in years 2 and 3 are too low compared with year 1. The second and third years are the next 2 calendar years even if no payment is made.

The following 3-year scenario shows why the $15,000 test alone is incomplete:

1. Year 1: $24,000 of qualifying old-rule support paid.
2. Year 2: $12,000 paid.
3. Year 3: $0 paid.

Based on our client scenario at TFX: Publication 504 Worksheet 1 produces $3,000 of recapture. In year 3, the prior payer includes $3,000 as income, while the prior recipient gets a $3,000 deduction.

For recapture reporting, the prior payer uses Schedule 1 line 2a, and the prior recipient uses line 19a. Each changes the line label to “recapture” as directed by Publication 504.

Recapture has exceptions, including certain reductions caused by death or remarriage and certain temporary-support or variable-payment arrangements. Keep all 3 years of payment records and the governing instrument.