Is Alimony Taxable

Most retirement planning software will not be able to distinguish the difference between alimony and child support, but there is a substantial difference and whether it is taxable or not. When doing a personal financial planning software review, it's important that if you use a financial planning software like ExecPlan Express that can model both correctly. Alimony received is taxable as income and is an adjustment to gross income if paying. It is also taxable and deductible only in the year paid or received, thus a December 2009 payment owed, but not received until January 1, 2010 is taxable or an AGI item in 2010.