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TeachMeFinance.com Alimony Payment -- Under the terms of a legal separation agreement or a divorce ruling, payment made to a spouse who has been divorced or who is living apart. Under IRS rules, these payments qualify as Deductions for the payer and taxable income for the payee. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.