Is Alimony in Arizona Taxable Income?
Taxation of Alimony in Arizona Through 2017
Our clients often ask is alimony in Arizona taxable income.
As of 2017 and before, alimony in Arizona is taxable as income by both the federal government and the State of Arizona.
It is treated very similarly to earned income from employment.
The person receiving the alimony in Arizona is solely responsible for paying those income taxes.
The party paying the alimony in Arizona, correspondingly, is permitted to deduct those spousal maintenance payments from his or her income for income tax purposes.
Taxation of Alimony in Arizona in 2018 and Beyond
However, that is all going to change in 2018 due to significant changes in federal tax law.
All alimony orders issued prior to January 1, 2018, will continue under the old system whereby the person receiving the alimony will pay income taxes on the amounts received and the spouse paying the alimony will continue to deduct those alimony payments from his or her income.
However, all alimony orders issued in a divorce or legal separation decree entered by the court after January 1, 2018, will not be taxable to the recipient or tax-deductible by the payor of the alimony.
Taxation of Alimony and the Recapture Rule
There are some exceptions to the tax deductibility under the federal Recapture Rule when a lump sum alimony payment is made to a spouse.
If you are considering a lump sum payment of spousal maintenance, you should contact a qualified Certified Public Accountant to discuss if the Recapture Rule applies to you.
If you have questions about whether or not alimony is taxable income in Arizona, you should seriously consider contacting the attorneys at Hildebrand Law, PC. Our Arizona spousal maintenance and family law attorneys have over 100 years of combined experience successfully representing clients in spousal maintenance and family law cases.
Our family law firm has earned numerous awards such as US News and World Reports Best Arizona Family Law Firm, US News and World Report Best Divorce Attorneys, “Best of the Valley” by Arizona Foothills readers, and “Best Arizona Divorce Law Firms” by North Scottsdale Magazine.
Call us today at (480)305-8300 or reach out to us through our appointment scheduling form to schedule your personalized consultation and turn your spousal maintenance or family law case around today.
Other Articles About Spousal Maintenance in Arizona
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- THE PROBLEM WITH ONLINE ARIZONA ALIMONY CALCULATORS
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- DENIAL OF SPOUSAL SUPPORT AS A SANCTION IN AN ARIZONA DIVORCE
- CONTINUING SPOUSAL MAINTENANCE AFTER THE DEATH OF A FORMER SPOUSE IN ARIZONA
- EFFECT OF MERGER ON MODIFICATION OF ALIMONY IN ARIZONA
- THE EFFECT OF THE 2017 TAX BILL ON DIVORCE IN ARIZONA
- EFFECT OF CDRP PAY ON ALIMONY IN ARIZONA
- TERMINATION OF ALIMONY ON REMARRIAGE IN ARIZONA
- THE EFFECT OF A MILITARY DISABILITY ON ALIMONY IN ARIZONA
- CAN VA DISABILITY BENEFITS BE USED TO PAY ALIMONY IN ARIZONA
- STATUTE OF LIMITATIONS ON ALIMONY IN ARIZONA
- AMBIGUOUS ALIMONY TERMS IN AN ARIZONA DIVORCE DECREE
- CIRCUMSTANCES TO MODIFY ALIMONY IN ARIZONA
- NOT SUPPORTING YOURSELF WILL NOT EXTEND ALIMONY IN ARIZONA
- WAIVING SPOUSAL MAINTENANCE IN A PRENUPTIAL AGREEMENT IN ARIZONA
- EFFECT OF SHARING LIVING EXPENSES ON ALIMONY IN ARIZONA
- EFFECT OF THE DIVISION OF PROPERTY ON ALIMONY IN ARIZONA
- AN ALIMONY AGREEMENT MAY AFFECT MODIFICATION OF ALIMONY IN ARIZONA
- CATEGORIES OF ALIMONY IN ARIZONA
- DEFENSES TO NON-MODIFIABLE SPOUSAL MAINTENANCE IN ARIZONA
- WHEN DOES ALIMONY TERMINATE ON REMARRIAGE IN ARIZONA
- DATE FOR CHANGE IN CIRCUMSTANCES TO MODIFY ALIMONY IN ARIZONA
- WAIVER OF SPOUSAL MAINTENANCE IN ARIZONA
- EFFECT OF WORKING OVERTIME ON ALIMONY IN ARIZONA
- ATTRIBUTING INCOME FOR SPOUSAL SUPPORT IN ARIZONA
- ARIZONA SPOUSAL MAINTENANCE LAWS
Chris Hildebrand wrote the information on this page about whether alimony is taxable income in Arizona to ensure everyone has access to information about the divorce process in Arizona. Chris is a family law attorney at Hildebrand Law, PC. He has over 24 years of Arizona family law experience and has received multiple awards, including US News and World Report “Top Arizona Divorce Attorneys”, Phoenix Magazine “Top Divorce Law Firms”, and Arizona Foothills Magazine “Best of the Valley” award.