If you finalize your divorce prior to the end of 2018, if you are the payer you can continue to deduction your alimony payment and your spouse must include those payments in is or her income for tax purposes.HOWEVER, beginning in 2019 Alimony is no longer deductible to paying spouse and no longer taxable to receiving spouse. THEREFORE, depending on which side of the divorce you are on, you may want to hurry up and get it done now, or may want to delay until 2019.
BIG tax consequences.... see your divorce lawyer now!
Need help with your tax planning or returns? Attorney and CPAs specializing in Expatriate, US International and US Nonresident taxation for 30 plus years. Email us at ddnelson@gmail.com
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