Alimony to be taxed under new tax plan

Supercoolmayo

Supercoolmayo

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Alimony payers lose tax deduction under GOP bill

The final version of the tax plan, which was released Friday and is set for votes next week, eliminates the tax deduction for alimony payments. Divorce lawyers say this move could make ending marriages an even more drawn-out and expensive process, and the change could be particularly painful for lower-income couples.

Alimony payments, typically codified in the terms of a divorce settlement, are separate from child support. They are the payments that someone gives to an ex-spouse who earns less money.

If the tax bill becomes law, the alimony deduction repeal would affect divorces carried out after December 31, 2018. The new rule wouldn't affect anyone already paying alimony.

But it'll mean big changes for divorce proceedings in the years ahead.


Right now, alimony payments are tax free for the payer, and they're taxed like regular income for the recipient. Since the recipient usually makes less money -- and is thus in a lower tax bracket -- it keeps more money in the family unit and away from Uncle Sam.

The IRS says that about 600,000 Americans claimed an alimony deduction on their 2015 tax returns, the most recent year for which data is available.
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Cabbage Patch

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kevm3 said:
they must really want to destroy the family structure in the country
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fukk alimony. :yeshrug:


Tax it AND child support. Families who are that broke are getting refunds back anyway. Everyone else is overpaid.

I get that it's already taxed through the losing spouse/parent. So are many things.

Tax it.
 
Field Marshall Bradley

Field Marshall Bradley

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Cabbage Patch said:
fukk alimony. :yeshrug:


Tax it AND child support. Families who are that broke are getting refunds back anyway. Everyone else is overpaid.

I get that it's already taxed through the losing spouse/parent. So are many things.

Tax it.
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If skimmed through that right... its not going to be taxed, as a payee you can no longer use it as a deduction,,,, which is kind of trife
 
AtomicUse

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kevm3 said:
they must really want to destroy the family structure in the country
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If you don't have a family, you're more available and willing to work. The more you work, the more money you make for the organization you're employed by. If I own an organization and employ you, why would I want you at home spending time with your family? That's time you could be at work, making me money. That money gets taxed, and the government gets their cut, so they want you working as much as possible too.
 
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