Is Alimony Taxable in Arizona?
Alimony is referred to in Arizona as spousal support or spousal maintenance. The parent that receives alimony must report those payments as taxable income on his or her federal and state tax returns. A spouse that pays alimony must report those payments as a deduction on their federal and state tax returns. However, the parties can agree to treat alimony differently, as far as it’s taxability. They can agree to treat it is part of a property settlement or as part of an equalization. In that instance, there is no reporting of alimony on either party’s tax returns at all. If you have any questions about alimony and the taxability of it, please contact me at Hildebrand Law. The phone number is (480) 305-8300. Thank you.