Per the Tax Cuts and Jobs Act, divorces finalized after December 31, 2018 will not have the provision to allow the payer to deduct alimony payments from their income tax. In turn, the recipient will not have a requirement to claim alimony as part of their taxable income. This will not affect:

• Divorces finalized on or before December 31, 2018.

• Payments stated to be other than alimony.

Any divorce agreements in place on or before December 31, 2018 will continue unaffected by this change, unless both parties agree to modify their divorce agreement to conform to the new amendments of the tax law.

Alimony Received

Alimony received is entered on screen 3, line 2. Be sure to enter the date of divorce (EF Message 5060) as well as the amount.

Alimony Paid

Alimony paid is entered on screen 4, line 19. Be sure to enter the date of divorce (EF Message 5345) as well as the amount.

States

If the divorce or separation agreement did occur after December 31, 2018, and a state requires the alimony amount to be reported, enter it in the prescribed field (listed above). The amounts entered are ignored by the federal return, but will flow to the state return.