The Childress Firm
Bring us your concerns. Call today.
901-318-3719
Our Practice Areas

New Tax Rules For Alimony Would Make Divorce More Expensive

If you've already been through a divorce, you know how taxes work for former spouses who are providing and/or collecting alimony: the payor deducts alimony from his or her income taxes while the recipient pays taxes on the money.

The new Republican tax plan making its way through Congress would change all that.

What would happen?

Under the proposed tax plan now under consideration, those paying alimony would no longer be able to deduct their payments from their income taxes. This would then inflate the payor's income, causing him or her to have to pay more in income taxes. Recipients, on the other hand, would no longer have to pay taxes on the money from their former spouse.

The new plan means that some divorcing couples - particularly those with a greater income inequity - would end up paying more in income tax under the new plan than they would on the current plan. The new plan would be simpler for the IRS, but would be more punitive for those paying alimony.

Get your divorce now?

While the fate of the new tax bill is still in question, those getting a divorce after it passes would be subject to the new, more expensive alimony scenario. You could wait and see what happens, or you could take action now. If you are thinking of getting a divorce and want to avoid paying more in taxes on alimony that you would right now, you may want to consider talking to a lawyer sooner than later.

No Comments

Leave a comment
Comment Information
In Bartlett, Serving The
Memphis Metro Area.
Get Answers & Advocacy
Email Us For A Response

Contact The Childress Firm, PLLC

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Bartlett Office

Main Office

The Childress Firm PLLC
7424 U.S. Highway 64 Suite 117
Bartlett, TN 38133

Phone: 901-318-3719
Fax: 901-761-4797

Contact Us