The recently passed tax reform bill eliminates the current tax deductions for individuals who pay alimony. This legislation eliminates the deduction effective January 1, 2019, meaning the deduction will not apply to separation agreements and alimony orders entered after 2018. Additionally, this can apply to modifications of alimony orders. However, it will only apply to modifications if expressly provided for in the instrument modifying the order.
Although this reform is not as pressing as it would have been in its originally proposed state, the effects will be hard felt by payors of alimony. It is essential to settle your alimony disputes prior to January 2019. Regardless of the complexity of your situation, Hatcher Law Group is committed to helping you come to a resolution. Contact us today to speak with one of our family law attorneys in regard to your specific needs.
For more information on which payments qualify as alimony and what will be affected by the new tax bill, please see: Proposed Tax Bill Eliminates Deduction for Alimony Payments.
At Hatcher Law Group, we are dedicated to providing you with exceptional legal services. Our attorneys work diligently to simplify the complexities of each case, alleviating unnecessary stress and ensuring each client’s experience is as seamless as possible. Schedule a consultation with one of our family law attorneys today.