Deducting alimony payments for income tax purposes In order to deduct alimony from the payor's gross income for tax purposes, the payment of alimony must meet all of the criteria set forth in the Internal Revenue Code section 71:

1. The payments must be made under a written divorce or separation agreement.
2. The payments must be in cash or its equivalents
3. The divorce or separation agreement cannot state that the payment is not alimony.
4. The parties cannot live in the same household when payments are made.
5. The obligation to make payments expires with the receiving spouse's death.
6. The payment cannot be called child support in the written agreement or be deemed to be child support by operation of the deemed child support rules.