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The evolving tax consequences of alimony

Many residents of Marlton, New Jersey, have to pay alimony or face the consequences of ignoring a court order to do so. While not everyone necessarily sees this as a burden, many people do. The silver lining for them is that, at least through the end of this year, alimony payments can be deducted from one's federal taxes.

It is important for those who want to take advantage of this tax deduction to be mindful that certain rules apply to claiming it, and not following these rules can mean a person does not get a tax deduction which he or she expected.

Basically, the rules require that a person's court order clearly specify that their alimony payments are indeed for ongoing spousal support and not some other purpose. It is therefore very important for a person who is paying alimony and his or her attorney to check over the language of the order carefully to make certain that it is clear what alimony payments are intended for. Those who are going to pay should also make sure they are following all other requirements for obtaining this tax deduction.

While this upcoming change will not affect those who are already paying alimony, those who are not yet paying should be aware that alimony payments made pursuant to court orders enter after December 31 of this year will not be tax deductible, unless of course something changes in the law between now and that time. This change was one of the keynote reforms of the most recent tax bill.

Although paying alimony is not something that everyone looks forward to, it does, at least for the time being, have some tax advantages for the one who is paying it. Detailed questions about how this tax deduction works should be directed to an experienced family law attorney.

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Weinberg, Kaplan & Smith, P.A.
8000 Sagemore Drive, Suite 8202
Marlton, NJ 08053

Toll Free: 866-350-9940
Phone: 856-375-1586
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