On June 1, 2017, under a separation agreement, taxpayer pays spouse $2000 a month as alimony. Taxpayer and spouse file jointly for 2017, and the alimony is disregarded for tax purposes.
On June 1, 2018, the divorce is finalized. Taxpayer remarries, and spouse will file as head of household. The taxpayer continues to pay the $2000 alimony all of 2018.
Now the alimony will be deductible by the taxpayer, taxable to the spouse. But will only 7 months be included (Jun through Dec) or will the entire year be included?
Or in other words, is the final divorce settlement date when the alimony becomes a tax item? Or is it the entire year, since the couple will NOT be filing jointly anymore?
Help.