New tax laws will have an impact on divorce issues. Those laws will have a definite impact on alimony payments in Massachusetts. They take effect on Jan. 1, 2019. So those who are considering divorce should know that as of that time payers of alimony won’t be able to deduct those payments from their taxes and those receiving those payments won’t have to include the amount as part of their taxable income.
The IRS has indicated that those using alimony payments as income tax deductions far outnumber those who pay taxes for receiving the funds. Alimony payments could be affected by about 30 percent by the new laws. At a first look, it may appear that the person who pays alimony may be on the losing end of the new laws. That may not always be the case, however.
Alimony payments are basically fueled by taxes. It stands to reason, then, that if the person paying alimony has an increase in taxes, maintenance payments will likely be decreased. The new laws may also have an impact on child support payments. In an effort to take advantage of existing laws, experts said many couples are trying to resolve any divorce disputes before this coming January.
A Massachusetts attorney will be up on the ways these new laws will affect divorced clients. A lawyer can advise clients how the new alimony laws will affect them. It may be a good idea for those so affected to get the facts on how these new laws will impact their personal situations before this January.