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Last Modified on Dec 12, 2025
The situation in California regarding the taxability of alimony payments is currently quite complex. It leaves many people wondering, “Is alimony taxable in Riverside, CA?” Understanding the answer may not be as straightforward as many may think. Tax law can be complex, and understanding how alimony payments impact it can empower you to better navigate your unique situation.
Federal Tax Law on Alimony
Federally, the situation is relatively simple because the changes in alimony tax law occurred several years ago. The Tax Cuts and Jobs Act of 2017 changed the federal tax law regarding alimony so that spousal support payments are no longer taxable income, nor are they tax-deductible for payers.
This arrangement applies to any divorce agreement executed after December 31, 2018. Alimony payments originating from divorce agreements finalized before January 1, 2019, are still taxable for payees and tax-deductible for payers.
California State Tax Law on Alimony
Currently, the Golden State has a different set of tax laws that diverges from the federal standard. For state income tax, spousal support payments continue to be taxable under prior federal rules as of 2025. Payers can deduct them from their taxable income, and payees must report them as taxable income, regardless of whether the divorce agreement was executed before January 1, 2019.
There is a major caveat: California is in the process of completely changing how it handles alimony taxation. According to SB 711, California will adopt the same rules as the federal government regarding state alimony taxation. Any divorce or separation agreement finalized after December 31, 2025, will not be taxable. Payers will not be able to deduct the payments from their income, and payees will not have to report them.
If you got divorced or plan to get divorced in 2025, two separate tax rules apply to your situation on a federal vs. state level. Federally, your alimony payments are not taxable. On a state level, they still are.
The new law regarding alimony payments does not apply to child support payments because they have a completely different tax treatment at both the state and federal levels. Recipients never have to report them as taxable income, regardless of when they began receiving child support payments.
Spousal Support by the Numbers
The current average weekly wage in California is $1,905. However, not all Californians work. A total of around 19 million Californians either work for wages or are self-employed. However, a total of one in five parents across the United States is a stay-at-home mom or dad. That only covers parents. There are plenty of stay-at-home wives and husbands who don’t have children, as well.
The chances of a divorcing spouse receiving spousal support payments are greatest if they have been a stay-at-home spouse or parent and do not have experience in the modern workforce. Most alimony payments are temporary and are designed to help non-earning spouses get on their feet financially. If you’re in the process of getting divorced and don’t understand how spousal support payments work, it’s worth hiring an alimony attorney to explain Riverside alimony laws in detail.
Why California’s Alimony Tax Laws Matter
California’s decision to change how alimony is taxed, or in this case, is not taxed, will have an impact on both the recipients of alimony payments and those who must pay them. Overall, the situation improves the financial lives of payees slightly and worsens the financial situation of payers.
The people making alimony payments will lose money because they’ll no longer be able to deduct the alimony from their taxable income. Those receiving the payments will gain a small amount because they won’t have to claim the payments on their tax returns, functionally giving them access to more money.
FAQs
Do I Have to Pay Taxes on Alimony Received in California?
You must pay taxes on alimony received in California if your divorce agreement was finalized before 2026. Currently, payors can deduct alimony payments on their California returns, and payees must report alimony as taxable income. However, nonresidents who receive alimony from residents don’t have to pay state taxes. It’s also relevant to note that the way California handles alimony taxation is changing in 2026.
Is Alimony Paid Considered Gross Income?
Alimony paid is not considered gross income federally for any divorce agreement finalized before January 1, 2019. However, California’s laws are a little different. Alimony paid is still considered gross income and must be reported as such on your California tax return. The situation will change next year, but the old rules will still apply to any divorce finalized before January 1, 2026.
What Is California’s New Alimony Tax Law?
California’s new alimony tax law is SB 711. SB 711 alters California’s laws on taxing alimony so that they conform to the federal standard. In California, alimony is currently considered taxable income. Federally, that’s only the case for divorce agreements finalized before January 1, 2019. As of January 1, 2026, California will begin to follow the same rules, and alimony will no longer be taxable for agreements made or modified after that date.
Do You Need to Report Alimony on Your Tax Return?
You need to report alimony on your tax return in California in 2025. If you received alimony, you must report it as income. If you paid it, you could deduct it from your income. You do not need to report alimony on your federal tax return if your divorce agreement was finalized and executed after December 31, 2018.
Hire an Alimony Lawyer at Edgar & Dow
Alimony can be a complicated matter, and understanding how your taxes are impacted can be even more confusing. If you’re not sure what to do about reporting spousal support payments, you can hire an alimony lawyer to help. The team at Edgar & Dow has extensive experience with spousal support cases and can easily answer any questions you might have. Contact us today to learn more. Let us put our knowledge and experience to work for you.
