Understanding your CP326 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 received amounts that are considered taxable alimony or separate maintenance, you must include the amount of alimony or separate maintenance you received as income. Report alimony received on Form 1040 or Form 1040-SR (attach Schedule 1 (Form 1040) PDF) or on Form 1040-NR, U.S. Nonresident Alien Income Tax Return (attach Schedule NEC (Form 1040-NR) PDF). You must provide your SSN or ITIN to the spouse or former spouse making the payments, otherwise you may have to pay a $50 penalty.

No, the payee spouse is not required to report alimony or separate maintenance income resulting from 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 are not required to report alimony as additional income.