Divorcees warily eye GOP plan to cut alimony tax deduction – By Dave Collins (foxbusiness.com) / Nov 16 2017
HARTFORD, Conn. – A congressional proposal to eliminate the tax deduction for alimony is generating concerns about higher taxes for men and less spousal support for women. That’s pushing some soon-to-be ex-spouses to try to get their cases resolved before the changes would take effect Jan. 1.
The House Republican tax reform plan would ditch the deduction, and alimony recipients would no longer be taxed on the payments they receive. Lawyers say the result could be higher taxes for alimony payers and less money available for them to pay alimony.
The changes only would apply to divorces finalized after 2017, but could affect existing divorce agreements modified after this year.
Republicans are expected to push the tax legislation through the House on Thursday. The Senate tax proposal wouldn’t change current alimony tax law.
Lawyers say eliminating the tax deduction could make difficult divorce negotiations worse.
PB/TK – Hey someone’s gotta pay for those proposed tax cuts, might as well make those paying alimony pay more. Meanwhile divorce lawyers phones are ringing off the hook get a final deal done.
