In community property states, payments to a separated spouse (as opposed to a divorced spouse) are deductible only when the amount exceeds the spouse's share of the community property income; for example, if the spouse's share of community property income is $20,000, and the alimony received and the remaining $20,000 is reported as other gross income. Only $2,000 is deductible by the spouse paying the alimony.
Payments That Are Not Alimony
The term alimony may be used in a decree to describe payments that do not meet the tax deductible requirements of alimony. Property settlements, payments not required by the decree or agreements, and payments not arising from the marital relationship (for example, a bona fide loan from one spouse to the other spouse)
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