The new tax law may change how spousal support is treated on your income tax returns in the future.
Under the Tax Cuts and Jobs Act passed by Congress in December, 2017, spousal support will not be tax deductible for the person paying spousal support. Likewise, spousal support will no longer be considered income, and thus taxable, for the person receiving spousal support.
It is important to note that this new law will only apply to divorces and separation orders that are executed on or after January 1, 2019. The provisions of the law related to this issue are not retroactive, and thus, do not apply to divorces and separation orders entered before January 1, 2019.
This insight into the law is provided by Michael S. Bailey, Esq. of the law firm of Bailey & Gunderson Co., L.P.A., with offices in Norwood, Western Hills and Anderson Township. Phone: (513) 631-0022.
