spousal maintenance

Why Do Alimony Tax Law Changes in 2017 Matter in My Divorce?

Important Federal Alimony/Spousal Maintenance Tax Changes:  For divorce and separation agreements or divorces finalized on or after January 1, 2019, the December 22, 2017 tax reforms in the Tax Cuts and Jobs Act (TCJA) eliminated an important and valuable tax deduction for the payer of alimony/spousal maintenance and also eliminated the requirement of the receiver to report these payments as taxable income.

Alimony and Spousal Maintenance Rules: Better Get It Right

Alimony (spousal maintenance) is a payment of money to a former spouse that continues after divorce. Alimony is tax deductible to the payer and taxable as income to the recipient if the payments truly qualify as alimony under IRS rules. Creative divorce settlements that include alimony or spousal maintenance can keep money out of Uncle Sam’s pocket and in your family’s – unless the IRS does not see it your way.
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