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• • • MAGI: Alimony 95 Prior to enactment of the Tax Cuts and Jobs Act (TCJA)*, alimony was generally considered taxable income to the recipient, and similarly the payer of alimony generally could claim an adjustment to deduct alimony paid from taxable income Upon enactment of the TCJA, alimony payments under separation or divorce agreements finalized after December 31, 2018, are not considered taxable income to the recipient or an adjustment to the payer’s taxable income Alimony agreements finalized on or before December 31, 2018, follow the pre-existing tax rules, described in the first bullet above, unless the agreement is modified after that date specifically to incorporate the new tax treatment of alimony payments Comparing Results to Eligibility Levels Determining Household Income Constructing a Household Purpose *Tax Cuts and Jobs Act (Pub. L. No. 115-97)