NEW TAX LAW AND ALIMONY
Since the new tax law came into being, individuals who are getting divorced may be in for a rude awakening.
Once a coveted deduction, alimony and support maintenance payments by the payor spouse can no longer be relied upon. The new tax law eliminates this deduction completely. It also eliminates such payments to the payee spouse as income. Alimony and separate maintenance payments are no longer part of the definition of gross income in the Income Tax Code. Payments for alimony and support are now taxed at the rate that applies to the payor spouse only.
The law was passed in December 2017 with a start date of January 1, 2019. What that means for individuals getting divorced is if you get divorced beginning in 2019, this law will apply. And, if you have a modification after January 1, 2019 of a divorce that occurred prior to that time, if the modification paperwork states specifically that the new law will apply, the payor spouse will not be able to deduct any of these payments and the payee spouse will not have to claim any of these payments as income.
Now that 2019 has arrived, if you divorce anytime between the present and until a new law comes into effect, the new tax law will affect you. If you are looking to modify post-judgment, that is modify a divorce that occurred before 2019, you have to state it clearly in the modification paperwork that the parties will be affected by the new tax law.
Need to talk about what your options are? Call Lizbeth Potts, a Tampa Family Law Attorney. This Family Lawyer in Tampa, FL is here to help navigate through these changes with you. Call Lizbeth Potts, a divorce lawyer in Tampa at 813.988.9190.