Changes to Alimony Under the New Tax Bill

Alimony is No Longer Deductible After December 31, 2018

Divorce is often a sensitive topic. While we hope you never have to go through one, we want to ensure you are aware of the tax implications involved with the new tax laws and help you plan accordingly should divorce be inevitable.

Under the new tax bill, alimony will no longer be tax deductible for divorce/separation agreements carried out after December 31, 2018, or for previous agreements that are modified after that date should the modification state that the new amendments apply. This means that after December 31, 2018, alimony (like child support) will no longer be considered income and thus cannot be taxed on the recipient’s side nor deducted from the payee’s side. Agreements established before December 31, 2018 are not affected by the new bill, but please use caution when modifying agreements after December 31, 2018 as the new tax bill might apply to modified agreements.  

Key Takeaways:

  1. If you’re RECEIVING alimony, you will want to establish the agreement AFTER December 31, 2018.
  2. If you’re PAYING alimony, you will want to establish the agreement BEFORE December 31, 2018.
  3. We recommend that you speak with your attorney to determine the timing and specifications of your agreement and have it carefully reviewed by a tax professional prior to executing the agreement.
  4. If you plan to divorce or modify your existing divorce agreement in 2018, please call our office at (813) 514-8273 for a tax planning appointment.


Thomson Reuters Checkpoint – Special Study on Individual Tax Changes in the “Tax Cuts and Jobs Act”

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