With the New Year comes new tax law that will have a future impact on the deductibility of alimony payments for tax purposes, and personal tax exemption of custodial parent. I read an article about the subject I think highlights the most important concerns well.
The final tax bill approved by Congress makes relevant changes effective Jan. 1 of next year (2019), so the new rules won’t affect anyone who divorces or signs a separation agreement before then.
After Jan. 1, 2019, not only is alimony paid not tax deductible, but the spouse receiving the alimony no longer has to pay taxes on it. The person who pays alimony, usually the higher wage earner in a divorcing couple, deducts the full amount and the recipient pays taxes on that alimony at their tax rate. Additionally, the tax bill eliminates the personal exemption a custodial parent could claim for each child. These new changes will have an effect on how child support payments are calculated and assets are divided in divorce proceedings going forward.
The new law is relevant and important to anyone seeking divorce. Be sure to take into consideration your attorney’s knowledge of these changes when choosing the right attorney for you!
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If there are any legal questions you may have, I encourage you to, please contact my San Jose Divorce Lawyers office. My San Jose Family Lawyer offices assists many people who are going through family law related issues. We have many Affordable San Jose Divorce Lawyer solutions for many different budgets. San Jose unbundled limited scope family lawyer. We help many individuals through this very chaotic period in their life. Proudly serving the following cities, Fremont, Milpitas, Los Gatos, Cupertino, Mountain View, and Santa Clara.