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AAML Opposition to Repeal of the Alimony Tax Deduction

We blogged recently about the 2017 Tax Cuts and Jobs Act which, in part, eliminates the tax consequences of alimony. To briefly recap, alimony is tax-deductible to the payor and taxable as income to the recipient under the current tax laws. The Tax Cuts and Jobs Act, however, revises the tax code to completely eliminate a payor’s ability to deduct alimony payments and a recipient’s obligation to report them as income. To put the scope of these changes into perspective, the IRS reports that over 600,000 taxpayers claimed alimony deductions on their tax returns in 2015. The elimination of the taxability of alimony is scheduled to take effect beginning January 1, 2019, causing a bit of a panic amongst attorneys and litigants attempting to account for these substantial changes to the tax code. Enter the American Academy of Matrimonial Attorneys. Continue Reading