Understanding your CP325A notice

A payment is alimony or separate maintenance if all the following requirements are met:

• The spouses don't file a joint return with each other
• The payment is in cash (including checks or money orders)
• The payment is to or for a spouse or a former spouse made under a divorce or separation instrument
• The spouses aren't members of the same household when the payment is made (This requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance.)
• There's no liability to make the payment (in cash or property) after the death of the recipient spouse
• The payment isn't treated as child support or a property settlement
• The divorce or separation agreement does not designate the payment as not includable in gross income of the payee spouse and not allowable as a deduction to the payer spouse

• Child support
• Noncash property settlements, whether in a lump-sum or installments
• Payments that are your spouse's part of community property income
• Payments to keep up the payer's property
• Use of the payer's property
• Voluntary payments (that is, payments not required by a divorce or separation instrument)

Child support is never deductible and isn't considered income. Additionally, if a divorce or separation instrument provides for alimony and child support, and the payer spouse pays less than the total required, the payments apply to child support first. Only the remaining amount is considered alimony.

If you paid amounts that are considered taxable alimony or separate maintenance, you may deduct from your income the amount of alimony or separate maintenance you paid, whether or not you itemize your deductions. Deduct alimony or separate maintenance payments on Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors (attach Schedule 1 (Form 1040), Additional Income and Adjustments to Income PDF). You must enter the Social Security number (SSN) or individual taxpayer identification number (ITIN) of the spouse or former spouse receiving the payments or your deduction may be disallowed and you may have to pay a $50 penalty.

No, the payer spouse can't deduct alimony or separate maintenance payments made under a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. 

If the divorce degree or separation instrument was executed before 2019 but later modified with the modification expressly stating the repeal of the deduction for alimony payments, you cannot deduct alimony from your income.