New Tax Law Eliminates Alimony Tax Deduction

A few things are certain when going through divorce, but the tax status of alimony payments was always a given.  Alimony, which is support provided by one ex-spouse to the other after a divorce has been entered, has historically been deductible to the payor and includable as income for the payee.  That is no longer permitted. On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act which took effect on January 1, 2018.  The new law eliminates the tax deduction for alimony payments.  As such, alimony payers will no longer be permitted to deduct alimony on their taxes.

Continue reading New Tax Law Eliminates Alimony Tax Deduction