Tag: tax cuts and jobs act of 2017

Spousal Support aka Alimony and the New Tax Law

The Tax Cuts and Jobs Act of 2017 (TCJA) made a significant change to the way spousal support (also known as alimony) will be treated in 2019.  Up until the end of 2018, spousal support is tax deductible to the payor and taxable to the recipient.  Under the new rule, the payor will need to pay income tax on the support payment and the recipient will pay no taxes on the support received. Divorces finalized before the end of 2018 will continue to operate under the old rule, unless the judgment specifically provides that the new rule applies.

This will mark a significant change for parties faced with a … Read the rest