Alimony is a taxable income for the person receiving and a taxable deduction for the person paying it. Both are reported on your 1040 form.
The full amount of alimony or separate maintenance must be reported in full for the taxable year. The person filing would not report any child support amounts for they are considered nontaxable income. The person paying will report the amount they have paid out and the person's social security number of who they paid it to.
If you choose not to report your alimony as income on your tax return, then it will most probably result in a tax audit. If you choose not to give the person paying you the alimony your social security number then you may have to pay a penalty of $50. If you are the person paying the alimony it qualifies as a taxable deduction if it meets the following requirements:
- You and your spouse or former spouse do not file a joint tax return together.
- You pay in cash (including checks or money orders).
- The divorce or separation papers do not say that the payment isn't alimony.
- If you are legally divorced or separated, you and your former spouse aren't under the same household when the payments are made.
- You have no liability to make payments after the death of your spouse or former spouse (whether in cash or in property).
- Your payment isn't considered or treated as child support.