Big Changes to Alimony Happen January 1, 2019

It is urgent that those getting divorced consider the changes in Alimony tax treatment of any agreements executed after December 31, 2018.  The Tax Cuts and Jobs Act (TCJA) dramatically change the deductibility of alimony to ZERO!

For all divorce agreements executed after December 31, 2018, alimony is not deductible for those paying nor is it considered taxable income for those receiving.

If you are getting divorced or an attorney that provides divorce services, this is very important to know. We put the word out earlier in the year, but with the year coming to a close thought it wise to say it again.

Questions about this change in alimony, contact us at questions@tedsmithcpa.com.

 

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