THERE'S A RUSH ON THE COURTHOUSE
Income tax laws for alimony payments will change for people getting divorced in 2019 and after. That's why some couples are putting their divorce on a fast track and rushing their divorce decree so it will always honor current laws. Houston attorney Chris Tritico explains, "Couples who are divorced by New Years Eve, 2018 - or before - will always abide by these income tax stipulations:
The former spouse paying alimony is able to deduct those payments from their taxable income.
The former spouse who is accepting the alimony must declare the payments as taxable income."
That will change for divorces beginning January 1. Tritico continues,
"Alimony will no longer be tax-deductible for the spouse making payments
The recipient will no longer have to declare those payments as taxable income."
It's a big change!