In 2019 spousal support will no longer be a tax deduction. Contact us as soon as possible to finalize your divorce this year to maintain this tax benefit.
A common tax deduction for alimony will be eliminated for any divorce finalized after December 31, 2018. This new law is part of the Republican tax overhaul President Trump signed into law late last year. The looming deadline has lawyers working overtime and their clients scrambling to become ex-spouses in a bid to avoid paying higher taxes.
When a couple divorce spousal maintenance (alimony) may be awarded to provide financial support for the lower-income spouse. In the past the payers have been able to deduct alimony payments on their annual tax returns, while the recipients paid taxes on the income. This deduction elimination shifts the tax burden from the recipient to the payer, which means more of the money will go to the government in the form of taxes.
You can learn more HERE.
Contact us TODAY to learn more!