Alimony Deduction — for Part-Year and Nonresidents

(1) For divorce decrees and separation agreements entered into before January 1, 2019, this rule still applies unless the divorce decree or separation agreement is modified after December 31, 2018, and expressly states that the alimony is not deductible to the payer or includible in the income of the recipient. If the divorce decree or separation agreement is entered into after December 31, 2018 this rule will not apply.

(2) Full-year nonresidents shall follow the rules under ORS 316.130(2)(c) in determining deductibility of alimony payments.

(3) In determining income from Oregon sources, part-year residents shall not deduct any alimony or separate maintenance payments, as defined in IRC 215(b) and 71(b), made to residents during the portion of the year the part-year resident was a nonresident.

(4) A nonresident’s alimony deduction must be prorated for the portion of the year that they are a nonresident of Oregon if they have income from other than Oregon sources. The alimony paid while a nonresident is to be prorated based on the ratio of their Oregon source income while a nonresident to their total income while a nonresident without deduction for alimony. Alimony paid is deductible in full once residency is established. Example and table attached in PDF.

[ED. NOTE: To view attachments referenced in rule text, click here to view rule.]