Tax on alimony

North Carolina Divorce Law Divorce and Separation Answers
1

Yep alimony received is taxed and alimony paid is tax deductible to the payor…sucks, but true. I had mine written in the separation agreement as property settlement rather than alimony so I wouldn’t have to pay taxes on it…

2

Is this the same for PSS?

3

I’m really not sure. I received a lump sum settlement when the separation agreement was finally signed as well as a monthly check for the next 10 years, but it was all called property settlement so that I wouldn’t have to pay taxes on it and he would get no deductions for it.

4

Dear rummy:

Greetings. Let’s see what we can tell you:

  1. Yes, alimony is generally taxable to the recipient, even if you are not working. The document that granted you alimony should inform you whether or not it is taxable. You may also want to contact your tax preparer to determine what your tax consequences are.

  2. Please consult your tax prepared on this.

  3. Yes, post separation support has the same tax consequences that alimony does. Thank you.

Janet L. Fritts
Attorney with Rosen Law Firm

4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607
919.787.6668 main phone
919.256.1665 direct fax

10925 David Taylor Drive, Suite 100
Charlotte, North Carolina 28262
704.644.2831 main voice
704.307.4595 main fax

1829 East Franklin Street, Bldg 600
Chapel Hill, NC 27514
919.321.0780 main phone
919.787.6668 main fax

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.

5

Hi,
I reside in NC and am going thru divorce. I’m a dependent spouse and I am currently unemployed.
1)If I receive alimony, do I have to pay tax on alimony even if I don’t get a job?
2)What is the tax on alimony and how is it calculated?
3)Is there a tax on post separation support too?

Thanks in advance.