The formulas
- Line 5 = year 2 - (year 3 + $15,000), not below zero
- Line 7 = year 2 - line 5
- Line 10 = (line 7 + year 3) / 2
- Line 13 = year 1 - (line 10 + $15,000), not below zero
- Recapture = line 5 + line 13
How it works
Publication 504 Worksheet 1 recaptures front-loaded alimony in the third year when payments drop by more than $15,000 from the second year, or fall sharply from the first year. The payer reports the recapture as income on Schedule 1 line 2a and the recipient deducts it on line 19a.
Recapture applies only to alimony under instruments executed before 2019 that still follow the old rules. Alimony under later instruments is neither deductible nor income. Payments that end because of death or remarriage before the end of year three, temporary support and payments tied to business or property income for at least 3 years are excluded.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Which three years are used?
The first three calendar years in which payments are made under the instrument.
Does recapture apply to child support?
No. Child support is never alimony.
Does it apply to post-2018 divorces?
No. Those payments are not deductible, so there is nothing to recapture.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.