Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: REGINALD E. McELHANNON, INTERIM DIRECTOR
SUBJECT: ALLOWABLE DEDUCTIONS – ALIMONY DEDUCTION FOR THE MAGI PROGRAM
MANUAL REVISION #105
The purpose of this memorandum is to address an additional change to MAGI Allowable Deductions for Alimony payments. The 2018 Tax Reform introduced changes to when alimony payments can be used as a deduction.
- If the legal separation or divorce decree is finalized before January 01, 2019 then alimony payments are an allowable deduction.
- If the legal separation or divorce decree is finalized or changes are made to the agreement on or after January 01, 2019 then alimony payments are not an allowable deduction.
The allowable deduction for alimony can be found on Line 31a and 31b of the IRS Schedule 1 for IRS form 1040.
- Review this memorandum and manual revisions with appropriate staff