California and the federal government have different tax laws about spousal support (also known as alimony). If you receive alimony payments, you must report it as income on your California return.To take a deduction on your California return for your alimony payments, please follow the steps below. A person making qualified alimony payments can deduct them. Schedule CA (540) line 19a says to enter Alimony Paid as an Addition, but that doesn't seem to make sense since it actually increased my tax liability. Are child support payments or alimony payments considered taxable income? In California, divorce tax implications commonly come up in a divorce settlement. To be prepared on these tax-related issues, click here. Alimony is considered earned income, so you will have to pay taxes on this money just like as though you were earning a salary. The IRS states that you can't deduct alimony or separate maintenance payments made under a divorce or separation agreement executed after 2018.