How Divorce or Separation May Impact Your Taxes
Divorcing or separating taxpayers need to be aware of how the breakup of a marriage may affect their 2019 tax returns. The tax treatment of alimony and separation payments changed for divorce and separation agreements that occurred (or, in some cases, were modified) after 2018. Prior to the Tax Cuts and Jobs Act, alimony was deductible from the gross income of the payer and had to be included in the gross income of the recipient. This remains true for agreements executed no later than 2018. But for agreements executed after 2018, these payments aren’t deductible from the payer’s gross income, and aren’t includable in the recipient’s gross income.
For more information, check out this IRS Tax Tips article, Divorce or separation may have an effect on taxes.
Do you have questions or concerns about how divorce or separation may effect your taxes? If so, contact your Maloney + Novotny representative or use this online contact form.