December 22, 2017
Monthly Misconception for December – “The New Tax Law Eliminates Your Alimony Deduction”
Monthly Misconception for December – “The New Tax Law Eliminates Your Existing Alimony Deduction”
No it doesn’t, as long as your divorce or separation agreement is entered into BEFORE January 1, 2019.
The change in the tax law eliminating the alimony deduction isn’t retroactive. This means that if you are already divorced and deducting your alimony payments, the new tax law won’t affect you. It won’t affect even if you aren’t yet divorced or haven’t even started the divorce process as long as you enter into a separation or divorce agreement by December 31, 2018.
Remember that even under the existing tax law alimony isn’t “automatically” tax deductible. Other conditions need to be met. Your lawyer should be able to explain these to you.
The new law applies to divorcing couples whose separation or divorce agreement is signed after December 31, 2018.
The new tax law affects divorced or divorcing couples in other ways as well. I recommend you confer with a divorce lawyer to see how you may be affected.
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