What the Tax Cuts and Jobs Act has Changed About Alimony
The Tax Cuts and Jobs Act was signed into law in December 2017. Some portions of the Act took effect commencing January 1, 2018. Others, such as changes to how the federal government allows alimony to be treated, took effect on January 1, 2019.
Prior to December 31, 2018, alimony payors traditionally deducted the alimony paid from their personal income reported to the IRS and alimony recipients included the alimony received in their personal income reported to the IRS, effectively shifting the tax burden of the alimony award to the recipient spouse and their smaller tax bracket. Shifting the tax burden effectively allowed families to benefit from monies that would otherwise remain in the hands of the federal government.
If you have questions about alimony, and want to discuss those questions with an attorney, call Angela Neave, Esquire, at (954) 981-2200 for a free consultation.