Now that we are into 2019 the Tax Cuts and Jobs Act has some additional tax implications. Previously, alimony was taxable to the recipient but that is no longer the case depending on when your divorce was finalized.
As a result of the Tax Cuts and Jobs Act, alimony for divorces settled in 2019 or later is taxable to the payor and no longer taxable to the recipient. Oftentimes the payor was in a higher tax bracket than the recipient so the government expects to receive additional tax as a result of this change.
Many of the changes to individual income taxes are only effective through 2025 unless extended. However, this is a permanent change to the tax law.
For more information, check out the following article from the Tax Adviser, Divorce post-TCJA: unexpected consequences.
Contact your accountant if you have additional questions.
Many of the changes to individual income taxes are only effective through 2025 unless extended. However, this is a permanent change to the tax law.
For more information, check out the following article from the Tax Adviser, Divorce post-TCJA: unexpected consequences.
Contact your accountant if you have additional questions.
