The alimony deduction is an above the line deduction.
Alimony or separation payments are deductible if the taxpayer is the payer. Receiving spouses must include the alimony or separation payments in their income. If a divorce agreement was finalized by January 31, 2018, there is no change in the alimony deduction.
Due to the Tax Cuts and Jobs Act (TCJA), alimony paid will no longer be deductible if you entered into a divorce or separation agreement on or before December 31, 2019. It also applies if the agreement is changed after December 31, 2019, to show that the alimony received is not included in your former spouse’s income. Alimony paid will also not be deductible if a divorce or separation agreement is entered into after December 31, 2019.
