Q: I am finalizing the terms of a divorce from my husband of 19 years. We have two children and I will get custody with my husband having visitation. He will pay me alimony and child support. I am aware that alimony is no longer tax-deductible but wonder if that is also the case with child support.
A: There are a few things to clarify. First, for divorces finalized after 2018 alimony is no longer a tax deduction for the party making the payment. This also means that the recipient does not have to include the alimony in income.
For pre-2019 divorces, the alimony paid could be deducted but the recipient had to include the payment as income. This was often favorable because the payor is generally in a higher tax bracket than the payee, so through negotiations the parties could decide how the tax benefits and detriments could be shared.
Now the alimony is no longer a tax issue for either party. And let me clarify that any divorce finalized before 2019 continues to be taxed under the old rules, even for tax years after 2018.