Note for CA returns: CA does not conform with the federal change for divorces finalized after December 31, 2018, as well as separations signed after that date. Thus all alimony received must be entered in TaxSlayer regardless of the date of the divorce decree or subsequent amendments. 

  • Note: If the divorce agreement that provides for alimony was executed prior to 1985 and hasn’t been modified, the return is out-of-scope. 
  • See page E-14 of  Pub 4012 for the tests to determine if payments to a former spouse are alimony.
    • In particular, child/family support received is NOT alimony and is NOT taxable income.
  • On the Alimony Received page [Federal Section > Income > …]:
    • Enter the alimony amount received.  Don’t include any fees.
    • Enter the date of the divorce, or separation agreement.
      • If the alimony agreement was revised after 2018, and the revised agreement says that alimony received is longer treated as income (nor as reduction in income by the paying taxpayer), do not enter the date of the original agreement. Instead, enter the revised date.
      • Note for CA returns: TaxSlayer uses the entered date to determine if the income is taxable on the federal return. If it isn’t federally taxable, TaxSlayer then correctly adjusts (increases) income on CA Schedule CA Part I, Section B line 2a.
  • When alimony (pre-2019) is income on the federal return, TaxSlayer correctly handles these aspects:
    • Alimony is not considered earned income for EIC.
    • Alimony is considered compensation for the purpose of making an IRA contribution.

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