Is Alimony (Spousal Support) Taxable in California?

I am often asked whether alimony is taxable in California. The short answer is YES.

Here’s the question I received yesterday. I post it as I believe the answers to the question are helpful.

QUESTION: I have a spousal support mutual written agreement that I started receiving payments in 2024 ( entered also that year ) . I know federally, support from agreements after 2019 isn’t taxable to the recipient. But what about California?
Details:
• Still married but living apart.
• Agreement: $5,000/month support.
• My ex deducts $1,300/month for car and insurance (which both are under his company), so I actually get $3,700/month.
• This is my only income, about $25,000 received in 2024.
Questions:
1. Is spousal support taxable in California?
2. Should I report $5,000 or $3,700 monthly as income?
3. Do I need to file a California return if this is my only income?

ANSWER: For California state income tax purposes, spousal support is taxable to the recipient and  deductible for the payer, regardless of when the agreement was finalized.

However, for federal income tax purposes, spousal support is not taxable to the recipient and not deductible for the payer if the agreement was finalized after December 31, 2018.

HOW MUCH SHOULD THIS PERSON PAY? How much to pay is a more interesting question because you say your ex deducts your auto loan and the insurance for the auto. You say that “auto and the auto loan  are under his company, so I actually get $3,700/month.”

For an article explaining how California Courts determine spousal support (alimony) click here. With respect to your case: If your spouse deducts the costs of the auto as a business expense then you might be able to pay taxes only on the income received.

Since you are getting a divorce you and your ex have to exchange your tax returns by law with your preliminary declarations of disclosure. The ex’s tax return would list the business deductions and if your vehicle is a business expense–your ex deducts the car loan and the car insurance from his business profit on his tax returns then arguably you could pay tax only on the funds received.

In contrast, if your ex paid the auto loan and the auto expenses out of pocket then the alimony received would be $5,000.00 per month not $3,700.00.

SPOUSAL SUPPORT AGREEMENTS MUST BE ORDERED BY THE COURT TO BE ENFORCEABLE: Which leads us to the last and perhaps MOST IMPORTANT POINT. You say “I have a spousal support mutual written agreement that I started receiving payments in 2024…”  That statement is not clear.

I believe you mean you and your ex came to this agreement between yourselves. No lawyers and there’s no order from a court regarding spousal support. If I am right the entire agreement is unenforceable.

It would make sense for you and your spouse to put your agreement in writing  AND submit it to the court as a proposed order (might need a lawyer to help you write it, but you wouldn’t need to hire them to be your attorney of record.)  You would submit your agreement as a stipulation and proposed order to the court in which you are getting divorced. It would then be enforceable.

Galen Gentry assists clients in Los Angeles and Southern California with divorce issues and explains the person’s rights and obligations in a divorce before they hire him. Mr. Gentry has 30 years of helping people to protect their families and their interests.

Call at (310) 282-7521 or contact us online by using the Orange form on the right of your screen to schedule a free consultation.