Is alimony taxable –  MAGI Income  Schedule 1 Line 2a  for  Covered CA Subsidies?

Introduction 

Alimony might count as MAGI income as it’s on line 2a of schedule 1 which attaches to your 1040. 

• The law relates to payments under a divorce or separation agreement. This includes:
  • Divorce decrees.
  • Separate maintenance decrees.
  • Written separation agreements.
• In general, if you makes payments to a spouse or former spouse you can deduct it on your tax return. The taxpayer who receives the payments is required to include it in their income.
• Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018.
• If an agreement was executed on or before Dec. 31, 2018 and then modified after that date, the new law also applies. The new law applies if the modification does these two things:
  • It changes the terms of the alimony or separate maintenance payments.
  • It specifically says that alimony or separate maintenance payments are not deductible by the payer spouse or includable in the income of the receiving spouse.
• Agreements executed on or before Dec. 31, 2018 follow the previous rules. If an agreement was modified after that date, the agreement still follows the previous law as long as the modifications don’t do what’s described above.

Jump to section on:

#Adjustments to Income - Schedule 1

#Schedule1 1040

• Part I Additional Income
  • 2a Alimony received
  • 3 Business income or (loss). Attach Schedule C
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  • 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
  • 7 Unemployment compensation
  • 8 Other income:
    • a Net operating loss
    • b Gambling income
    • c Cancellation of debt
    • d Foreign earned income exclusion from Form 2555
    • e Taxable Health Savings Account distribution
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• Part II Adjustments to Income
  • 11 Educator expenses
  • 13 Health savings account deduction. Attach Form 8889
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  • 15 Deductible part of self-employment tax. Attach Schedule SE
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  • 16 Self-employed SEP, SIMPLE, and qualified plans -
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  • 17 Self-employed health insurance deduction
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  • 19a Alimony paid
  • 20 IRA Individual Retirement Account deduction 
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  • 21 Student loan interest deduction
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Child & Related Pages

CA Court Website on Alimony – Spousal Support

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