The number of couples going through divorces tends to rise at the beginning of each year. If you are among the many Florida residents who plan to divorce your significant other in the year to come, it is important to understand how doing so might impact your taxes. At the Law Office of Cheryl A. Bucker, P.A., we understand that divorce always has tax implications, but that new tax laws that took effect in 2019 may mean even more changes in the manner in which you file your taxes after a divorce.
According to Forbes, one of the major tax law changes that will affect people who divorce in 2019 and thereafter relates to alimony or spousal support payments, and the more you understand about it, the better. Until this year, the spouse who paid alimony or spousal support was able to deduct the amount he or she paid from his or her taxable income. The spouse receiving the support from the other, meanwhile, would report this as part of his or her income.
This is not the case any longer, however. Anyone who divorces in 2019 or after may no longer deduct alimony payments for tax purposes, and this may make some parties especially resistant to making alimony payments at all. Conversely, the spouse pursuing support may fight harder than ever to obtain it, because he or she will no longer have to report it as income and therefore lose some to taxes.
Something else you should know about filing your taxes, should you plan to finalize your divorce this year or later, is that you or your ex can no longer list any children you share as tax exemptions. The child tax credit has essentially replaced these exemptions, but many people are finding that they do not receive the same tax deduction they once did for supporting children. You can learn more about divorce on our webpage.