Alimony no longer a taxable transaction

Currently, taxpayers who pay alimony may be able to deduct the payments from their taxable income, and recipients must claim alimony as taxable income. The Tax Cuts and Jobs Act will revise the rules. For divorce or separation agreements executed after Dec. 31, 2018 (or executed before but modified after this date), alimony payments are neither deductible by the payer nor includible in income by the recipient. This change is permanent.