💔 Spousal Support and Taxes: An Unfortunate Match 💰 - Palma Financial

One of my clients recently asked me for a friend:

“She is paying her ex-husband alimony and spousal support of $150,000 and $280,000 based on her 2017 divorce decree. Her accountant told her that these payments are no longer payable.”

Here’s what you need to know:

💼 If your divorce decree was issued before December 31, 2018, payments might still be subject to pre-TCJA tax rules, which allow the payer to deduct the payments and require the recipient to report them as taxable income.

💵 If your divorce decree was issued on or after January 1, 2019, payments are not tax-deductible for the payer and not taxable income for the recipient.

As a Tax Advisor and CPA, I can help you navigate these changes in the tax laws and assist you in making informed decisions about your finances. Don’t let these changes catch you off guard.

📅 Discover how the recent changes in tax laws can impact your spousal support payments and gain insight into the best ways to handle your finances.

Don’t wait until it’s too late.

Schedule your tax assessment today!