If you’ve gotten divorced recently and you’re making alimony payments, you may wonder if your payments are taxable. Taxes are tricky enough as it is, and being divorced makes tax season even more complicated.
But don’t worry! The team at Vasquez de Lara Law Group can help.
We understand how complicated taxes are after a divorce. With changing laws and new regulations, it’s hard to keep up and know what to do come tax time. If you want to avoid making mistakes on your tax return, continue reading this article. We’ll cover whether or not alimony is taxable and more.
Do you have more questions about your divorce? Do you need a reliable and empathetic advocate on your side? If so, contact a Miami alimony lawyer from Vasquez de Lara Law Group.
Alimony is a court-ordered obligation for one spouse to provide financial support to the other spouse during or after the divorce. The purpose of alimony is to help the spouse with a much lower income transition to their new lifestyle following the divorce.
The courts generally order alimony if one spouse makes a significantly lower income than the other spouse. Additionally, alimony may be ordered if one spouse was financially dependent on the other spouse and had no income at all.
There are several types of alimony—such as permanent alimony—where one spouse must make payments to the other spouse until death or until the lower-income spouse remarries.
Temporary alimony, on the other hand, is when one spouse pays the other spouse for a determined set of time, usually while the divorce is pending.
Another common type of alimony is rehabilitative alimony. This is when one spouse pays the lower-income spouse while they look for a new job or go to school or training that will help them with their job search.
The IRS does not consider these payments as alimony:
The answer to this question depends on when you got divorced. Essentially, if your divorce was finalized on or after Jan. 1, 2019, you will no longer be able to deduct alimony payments on your tax return. Before this law became effective, alimony payors could deduct the alimony payments and reduce their tax burden.
So what does that mean for couples who got divorced before Jan. 1, 2019?
This law does not affect couples who were divorced before this date. So if your divorce was finalized before January 1, 2019, your alimony payments remain fully deductible.
So what does this mean for couples who got divorced after Jan. 1, 2019?
If your divorce was finalized after Jan. 1, 2019, your alimony payments are not deductible.
If you’re wondering whether or not you can report your alimony payments on your tax return, look at when your divorce was finalized. If you’re still unsure or have more questions, contact a Miami divorce lawyer from Vasquez de Lara Law Group. We can help you resolve your issues and answer your questions.
Filing taxes after a divorce can be overwhelming, especially if you’re an alimony payor. We understand how frustrating it can be, so we’re here to help you. The team at Vasquez de Lara Law Group will offer you support and guidance, and we can answer any questions you have about alimony payments.
Stop guessing and get the answers from our experienced and reliable divorce attorneys. Call us today to schedule your free case review.