Is Alimony Tax-Deductible in Illinois?

 Posted on April 29, 2026 in Spousal Maintenance

Alimony, or spousal maintenance, has seen some changes in how it’s taxed in the past ten years. For anyone wondering whether their spousal support will be deductible in 2026, it’s important to have up-to-date information. This will help you accurately anticipate how much you’ll be paying and whether you'll get anything back. A Naperville divorce attorney can help you understand what the current tax laws are and what that means for your financial planning.

How Was Spousal Support Previously Taxed in Illinois?

Illinois followed, and still follows, the federal government’s setup for taxing spousal support. For decades, the taxing of alimony followed a simple rule: the spouse who paid got a deduction, and the spouse who received it counted it as taxable income. This made some sense because it mirrored the way other forms of income transfer were handled. If you were the higher earner paying support, you could deduct those payments from your federal taxable income. If you were receiving support, you reported it as income and paid taxes on it.

This setup had a significant effect on spousal support negotiations. Because the paying spouse was often in a higher tax bracket, the deduction had more value to them than the tax burden did to the recipient. This sometimes created circumstances where, with the right negotiation, both sides could come out ahead.

How Did the Tax Cuts and Jobs Act Change Taxes on Alimony in Illinois?

The Tax Cuts and Jobs Act of 2017 eliminated the federal deduction for alimony payments. For any divorce or separation agreement executed after December 31, 2018, the tax situation has been almost reversed.

In practice, this means two important things. The spouse paying support can no longer deduct those payments from their federal taxable income. Additionally, the spouse receiving alimony no longer has to report it as income and is not taxed on it.

If your divorce was finalized in 2018 or earlier and your agreement hasn't been changed, you may still be operating under the old tax structure. If you're divorcing now, the new rules apply.

Are There Any Tax Breaks Available to People Paying Spousal Support in Illinois?

For divorces finalized after December 31, 2018, there are no federal or state tax breaks available to the spouse paying spousal support.

When Illinois courts determine spousal maintenance, they look at both spouses' gross incomes and the length of the marriage (750 ILCS 5/504). Courts can also consider several additional factors under Illinois law, including:

• Each spouse’s earning capacity

• The standard of living established during the marriage

• Each spouse’s financial needs and available resources

• The duration of the marriage

• Contributions one spouse made to the other’s education, training, or career

• Any impairment to a spouse’s earning capacity due to domestic responsibilities

This system accounts for the fact that one spouse often significantly out-earns the other in a marriage. While it may make sense not to tax the receiving spouse – the one earning less – the elimination of the deduction has had a significant impact on paying spouses.

Because of this, negotiations tend to go differently than they did in the past. Paying spouses may push harder for lower amounts or shorter durations, since there's no tax benefit to offset the cost. Both sides need to carefully factor in the full after-tax impact when evaluating any proposed settlement.

Professional guidance in the form of lawyers and financial experts can be invaluable in making sure support agreements are fair and realistic. It’s also possible that they’ll be able to help find other ways to offset the financial impact of support, such as in the division of retirement accounts and other assets.

Call Our DuPage County, IL Spousal Maintenance Attorney Today

Attorney Pesce brings almost two decades of legal experience to every case. If your divorce involves spousal support questions, Pesce Law Group, P.C. will work hard to reach a fair settlement for you. Call us at 630-352-2240 to schedule your free consultation with our Naperville divorce lawyer today.