Question: My ex-wife wants to file for Social Security at 62 (deeming problem aside), but I’ll be paying her alimony until she is 66. Simple question: does alimony count as income such that it will reduce her benefit by $1 for every $2 above the $15,000+ limit? It seems like it should, but I wasn’t able to find it explicitly stated anywhere.
Answer: No, alimony payments don’t count under the earnings test. They do count for purposes of determining whether your income is high enough such that your Social Security benefits are subject to federal and, in some states, state income taxation.
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