New Tax Bill Affects Treatment of Alimony Payments and Deductions

Alimony payments, typically codified in the terms of a divorce settlement, are separate from child support.  They are the payments that someone gives to an ex-spouse who earns less money.

The alimony deduction repeal would affect divorces carried out after December 31, 2018.  The new rule wouldn’t affect anyone already paying alimony.  But it will mean big changes for divorce proceedings in the years ahead.  

Right now, alimony payments are tax free for the payer, and they are taxed like regular income for the recipient. 

To read more, see here.

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