Is alimony included in gross income?

The correct answer is that alimony is not included in gross income for tax purposes for divorce agreements executed after December 31, 2018. This change was established by the Tax Cuts and Jobs Act (TCJA), which specified that for any divorce or separation agreement signed after this date, alimony payments are not taxable to the recipient nor deductible by the payer.

For agreements made prior to this cutoff, alimony payments were indeed included in the payer's gross income and were also a tax-deductible expense for the payer. This distinction is essential when considering the timing of divorce agreements, as it affects how alimony is treated for tax purposes.

To summarize, it is important to recognize that the treatment of alimony in gross income depends significantly on when the divorce agreement was executed, with significant changes occurring for agreements after 2018.