Three things decide the answer: whether the payment is legally qualifying alimony, the date the agreement was executed, and whether a later modification changed its tax treatment. The sections below cover payer and recipient instructions, exclusions such as child support, and a records checklist. Always check the IRS forms and instructions for your tax year, because line numbers get revised.
Australia-based US taxpayers face the same federal rules, since the IRS taxes worldwide income of citizens and resident aliens wherever they live.
Key Takeaways
- The agreement's execution date, not the payment date, usually decides the treatment.
- Payers deduct pre-2019 qualifying alimony on Schedule 1; recipients report it as Schedule 1 income.
- Most post-2018 agreements: no deduction, no federal income.
- Confirm any modifications, collect the recipient's taxpayer ID, and keep payment records.
First Determine Whether the Alimony Is Reportable
The agreement date is the starting point
The Tax Cuts and Jobs Act repealed the alimony deduction and inclusion for instruments executed after 31 December 2018. Under IRS Topic 452, payments under those instruments aren't deductible by the payer and aren't income to the recipient.
Instruments executed on or before that date generally keep the old treatment. The legal instrument controls, not the memo line on a payment or an informal understanding.
Review modifications to older agreements
A later modification doesn't automatically change the treatment. The old rules continue unless the modification expressly adopts the post-2018 rules.
Publication 504 gives two contrasting examples:
- A 2016 decree modified in May 2025 raised payments but did not adopt the new rules, so all 2025 payments stayed deductible and taxable
- Where the modification expressly adopted the new rules, only the January to May payments kept the old treatment
Review the original decree, every modification, effective dates, and any language about federal tax treatment.
Confirm the payment meets the federal definition
For pre-2019 instruments, IRS Publication 504 requires all of these:
- Payment is to or for a spouse or former spouse under a divorce or separation instrument
- The spouses don't file a joint return together
- Payment is in cash, including cheques and money orders, not property or services
- The instrument doesn't designate the payment as non-alimony
- No liability continues after the recipient's death
- The payment isn't child support
If spouses are legally separated under a decree, they also can't share a household when payments are made.
Quick decision path:
- Executed after 2018, with no express adoption of old rules? Don't claim or report it on the federal return.
- Executed earlier and unmodified (or modified without adopting the new rules)? Test each payment against the list above.
- Payment fails a test? It isn't alimony for federal purposes.
Where to Report Alimony Paid on Form 1040
Who can claim the deduction
Only qualifying payments under an agreement that retains the pre-2019 treatment are deductible. It's an adjustment to income, so you don't need to itemise. Don't enter payments under most post-2018 agreements.
Report it on Schedule 1
On the 2025 Schedule 1, Part II covers adjustments to income:
| Line | Entry |
|---|---|
| 19a | Alimony paid (deductible amount only) |
| 19b | Recipient's SSN |
| 19c | Month and year of the original agreement |
Total adjustments carry to Form 1040 or 1040-SR, line 10. Confirm line numbers on your tax year's form, not an older article or a software screen.
Include the identifying information
You must give the recipient's SSN or ITIN. The IRS says omitting it may lead to the deduction being disallowed and a $50 penalty. Confirm current requirements before filing.
Match the return to your records
Reconcile the amount against bank statements, cancelled cheques, transfer confirmations and a payment ledger. If one payment covers several obligations, split out alimony from child support, property obligations and other transfers.
Third-party payments can qualify. Publication 504 treats payments to a third party for a former spouse's medical or dental expenses, under the instrument, as alimony.
Software and amended returns
Tax software usually asks for the agreement date and recipient ID before it places the amount on Schedule 1. Have both ready.
If a prior return omitted eligible alimony or claimed a non-deductible payment, review it with a tax professional. Form 1040-X corrects returns, and refund claims generally must be filed within three years of the original return or two years of payment, whichever is later.
Where to Report Alimony Received on Form 1040
Is the payment taxable?
Qualifying alimony under a pre-2019 agreement is taxable income. Payments under most post-2018 agreements are excluded from federal gross income.
Report it as additional income
On Schedule 1, Part I:
- Line 2a: alimony received (combine qualifying amounts from multiple agreements)
- Line 2b: month and year of the original agreement
With multiple agreements, use the date of the one producing the most income and attach a statement listing the others. The Schedule 1 income total carries to Form 1040 line 8. Verify these references for your tax year.
Nonresident aliens filing Form 1040-NR report taxable alimony on Schedule NEC, not Schedule 1.
Provide agreement and payment details
Keep the original agreement, modifications, payment totals and proof of amounts actually received. You must also give the payer your SSN or ITIN. Publication 504 notes a possible $50 penalty if you don't.
Plan for tax payments
Alimony isn't wages, so no employer withholds tax on it. The 2026 Form 1040-ES lists it as income not subject to withholding.
You generally need estimated tax payments when two conditions are met. You expect to owe at least $1,000 after withholding and credits. Your withholding also falls below the smaller of 90% of 2026 tax or 100% of 2025 tax (110% if 2025 AGI exceeded $150,000).
If alimony sits alongside investment or self-employment income, review your estimates.
Payments That Are Not Alimony for Federal Form 1040 Purposes
Child support
Child support isn't deductible by the payer or taxable to the recipient. If required payments are only partly made, they're allocated to child support first.
Publication 504 gives this example: $2,400 child support plus $1,800 alimony is required, but only $3,600 is paid. The first $2,400 goes to child support, so only $1,200 counts as alimony.
Property and noncash transfers
None of these qualify as alimony:
- Noncash property settlements and asset transfers
- Services or use of the payer's property
- Payments representing a former spouse's share of property
Property transfers between spouses or incident to divorce are generally governed by IRC Section 1041, which brings its own basis and future-sale issues. They just don't belong on the alimony lines.
Voluntary or poorly documented payments
A payment not required by a divorce or separation instrument isn't alimony. Don't rely on labels such as "support" or "maintenance." Read the legal terms and the actual payment obligation.
Records, Common Mistakes, and State Considerations
Documentation checklist
Keep:
- The original decree or separation agreement and every modification
- A payment ledger and bank records
- The other party's identification details
- Copies of filed returns
Records should show the agreement date, amount, payment date, and whether each transfer was alimony, child support or property-related. The IRS generally recommends keeping records until the limitations period expires, normally three years after filing and six years for substantial omissions.
Common errors
- Deducting payments under a post-2018 agreement
- Reporting nontaxable post-2018 receipts as income
- Entering child support as alimony
- Omitting the agreement date or recipient's ID
- Using outdated Schedule 1 line references
State and cross-border issues
US state treatment can differ from federal rules. California's FTB, for example, did not conform to the federal 2019 change. It now conforms for instruments executed on or after 1 January 2026. Check your US state tax authority before assuming the federal result carries over.
Cross-border situations need extra care. Living in Australia does not change the US federal rule for a US citizen or resident alien, and IRS guidance does not address Australian or treaty treatment.
Alimony paid to a nonresident alien former spouse may also trigger:
- Separate 30% withholding (or a lower treaty rate)
- Form 1042 reporting
VJM Global prepares Form 1040 and 1040-NR returns and supports US federal and state filings following IRS protocols, alongside international tax advisory for cross-border clients. A professional review is sensible if your situation spans several jurisdictions.
Frequently Asked Questions
Where do I report alimony on Form 1040?
Qualifying alimony under pre-2019 agreements goes on Schedule 1: received on Part I, line 2a, paid on Part II, line 19a. Most post-2018 alimony isn't entered at all. Verify line numbers for your tax year.
Is alimony taxable income?
Qualifying alimony under certain pre-2019 agreements is taxable to the recipient. Most post-2018 payments aren't federally taxable.
Can I deduct alimony payments on my tax return?
Only qualifying payments under an agreement that keeps the older treatment. You don't need to itemise, but you must meet current IRS requirements, including the recipient's SSN or ITIN.
Do I report alimony from a post-2018 divorce agreement?
Generally no. Such payments are neither deductible by the payer nor taxable to the recipient for federal purposes.
What happens if my divorce agreement was modified?
The modification's wording and effective date matter. If it expressly adopts the post-2018 rules, those apply from then. Otherwise the old treatment continues.
Is child support reported as alimony?
No. Child support is neither deductible nor taxable, and should be kept separate from alimony reporting.
