Alimony is the amount associated with divorce . A painful arrangement , but that is a fact of life. Another fact is that the IRS desires its share out of such money received by you .In other words alimony is taxable income in recipient’s hand. At the same time, the payment of alimony is also deductible for the person paying . Yes, the amounts paid under divorce or separate maintenance decrees or written separation agreements entered into between you and your spouse or former spouse are considered alimony.However Internal Revenue Code provides a number of condition that must be consulted before you can claim the payment for separation as deduction from taxable income of the tax year.
Read moreTaxation of Alimony Under Internal Revenue Code Simplified