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Thank you for allowing me to be of service to you regarding your tax question. According to the IRS guidelines, alimony is generally included in the taxable income of the recipient and a deduction to the person paying the alimony. Your quote of the Tax Treaty means that if the person making the alimony payments cannot utilize those payments as a deduction, the person receiving the alimony payments does not have to include those payments as income.
But what would be my situation in this case then? Because the treaty says the payments shall not be taxable in either Contracting State. Does that mean I would not have to pay taxes either?