Tag Archives: GOP Tax Bill

Loss of Alimony Tax Break in GOP Bill May Add to the Financial Pain of Divorce


Congress recently passed the Tax Cuts and Jobs Act.  A provision in the Act will change the long standing tax treatment of alimony. In the past, alimony has been taxable to the recipient and tax-deductible to the payer. Starting in 2019, the recipient will pay no taxes, and the payer will not be able to deduct the alimony payments. In effect, the overall tax burden may be higher than under the existing tax treatment, which may result in less alimony for the recipient. This article provides more information and raises some additional questions.

Click here to read the article.