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Tuesday, February 20, 2018

The new federal tax code that may have significant impacts on divorcing spouses in Idaho beginning in 2019.  Under the old tax code, a spouse paying spousal support to the other spouse either while the divorce was pending or after the divorce, was able to deduct the payments on their taxes.  Typically, that was a positive for the paying spouse.  The spouse receiving the payments paid taxes on the payments, just like any other income they would receive. Typically, that was a negative for the receiving spouse. 

Under the new tax law, and beginning January 1, 2019, and continuing until the new tax laws are changed, the paying spouse will no longer be able to deduct their payments to the other spouse on their taxes.  That is likely a negative for the paying spouse.  The spouse receiving alimony will not have to count the payments as income for tax purposes.   That is likely a positive for the receiving spouse. 

The new rules currently only apply

Posted by eswartz at 2/21/2018 3:45:00 AM
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