Note for CA state returns: CA does not conform with the federal change that for divorces finalized after December 31, 2018, as well as separations signed after that date, alimony received will no longer be treated as income to the recipient on the federal return. 
Because CA still treats all alimony received as income, 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 in or after 1985, 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. 
    • 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 will no longer be 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 state returns: TaxSlayer uses the entered date to determine if the income is taxable on the federal return. If it isn’t federally taxable, TaxSlayer will then, correctly, post an adjustment (increase) in income to 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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