Categories: Divorce

House Tax Plan Isn’t Amicable to Divorcing Couples

Another interesting article on The Wall Street Journal about how the new tax bill will impact couples getting a divorce.

“Tax-overhaul bill would change treatment of alimony payments on divorce agreements signed after this year.

Divorcing couples and their advisers are scrambling to cope with the possibility that alimony won’t be tax deductible for divorce agreements signed after Dec. 31.

Under current law, alimony payments are deductible by the payer and count as income to the recipient. This is different from the treatment of property settlements and child support, as those are neither deductible nor count as income.

In its version of the tax-overhaul bill, the House of Representatives included a provision repealing the current treatment of alimony for divorce agreements signed after 2017. The change is projected to raise $8.3 billion over 10 years.

It is unclear whether the provision will be enacted, as the Senate’s tax bill doesn’t have a similar provision….”

– By Laura Saunders

Read Full Article Here.

Cindy Best

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