The message for divorcing couples is clear. If your divorce agreement will include provision for the payment of alimony, deductible to the paying spouse and taxable, as income, to the recipient spouse, you need to have an executed divorce agreement by December 31, 2018. Beginning in 2019, the tax treatment of alimony, in effect…
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…