Can a taxpayer deduct maintenance payments to a former spouse?
The "Maintenance payments" are deductible by the taxpayer as long as they are included in the income of the payee. However, in order to be included in the payee's income, the IRS has specified that the following conditions need to be satisfied as follows;
1)the maintenance payment must be in cash,
2) the maintenance must be under a divorce decree,
3) the maintenance payment must terminate upon the death of the payee.
Maintenance payments that are ordinarily deductible are not deductible if the divorce decree specifically states that the payments are not alimony/maintenance and/or non-deductible.