The bill would eliminate the tax deduction for alimony and make alimony income tax-free to the recipient for divorce decrees. Under current law, ex-spouses who pay alimony can deduct the expense from their federal income taxes; ex-spouses receiving alimony payments have to claim the money as taxable income. To see more, read here.
Currently the person receiving alimony pays income tax on the alimony received. The alimony payer is able to deduct alimony payments from his/her income, reducing the payer’s tax burden. Beginning January 1, 2019, any alimony orders issued from that date forward, the tax burden for alimony will no longer shift from the payer…