A client emailed a question that you may also have:
Bob—
Good morning. Have you heard or do you know anything about a 2019 tax law change that makes alimony NOT deductible for the payor anymore? I presently pay alimony as you might remember.
Nervous Client
Dear Nervous Client,
Good question. For divorces finalized before 12/31/18, nothing has changed. I.e., you will still be able to deduct the alimony and she is required to claim it as income. The change is for divorces that are finalized or modified after 12/31/18. For those individuals, alimony will no longer be tax deductible when paid or taxable when received.
Best,
Bob
