new tax code impact on maintenance payments
hi Terry! thank you for your time. i heard you today on WGN Wintrust Lunch. i had a question regarding my divorce situation and the new tax code. i have been divorced since april 2011, with a review (and a revised amount) awarded as monthly unallocated support/maintenance in April 2016. my ex husband has been deducting and i have been paying taxes on the maintenance. does the new tax code mean that people who are already divorced and receiving maintenance as i am ... does it apply to my situation as well, so that i no longer have to claim it as income and pay taxes on it going forward? or is it just for agreements signed after 2018? thank you so very much for your answer. have a great holiday season!! susan harris
Terry Says
Sorry if I misled you. On a closer reading of the new law, maintenance/alimony will no longer be deductible to the payer or income to the receiver starting with those divorced in 2019. Frankly, it is unclear to me if that will apply to existing arrangements made before 2019. I will be looking for answers as the tax law becomes clearer.
