Changes to the Taxation of Alimony

In Pennsylvnaia, under current law, alimony is deductible to the spouse making the payments and must be included as income on the taxes of the spouse receiving the payments. With the current administration's tax overhaul this is about to change. 

In a bill that was passed on December 20, 2017 alimony payments will no longer be deductible for the payor, nor taxable for the receipient. The provision of the bill that changes the taxation of alimony will come into effect after December 31, 2018. This means that those divorce and separation agreements signed after December 31, 2018 will operate under this new law. 

If you are considering a divorce in Pennsylvania it may be to your advantage to wait for the new law to take effect or to finalize your divorce beforehand. Contact our team of experienced family law attorneys to consult with an attorney concerning support obligations and divorce. 

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