Important Information for You to Know About Your Alimony Deduction on Your Post 2019 Taxes
In the past two years, there has been enactment of the tax cuts and job act. This law will affect the persons that will be getting a divorce in the coming years. Likewise, those individuals that got a divorce before this law came into motion are talked about. There are those people that get into a marriage to solely get a divorce. In doing so, one will be able to get cuts on his/her alimony payments. If you are among these persons, you should find out whether you are affected by the enactment of this new law. Before this law was introduced, one was able to reduce his or her amount of taxable income by the alimony payments. However, if you did not remove the alimony from taxable amount, you would be taxed by the IRS. On the other hand, there are requirements that you were required to meet in order for the alimony payments to be deducted from your taxable income. Thus, one had to include his/her alimony payments in the taxable income before the introduction of this enactment.
The enactment of this tax law brought about many changes. This is due to the fact that the alimony deductions were removed. Thus, those that are going to pay taxes after the introduction of this law are going to suffer a lot. This is on the grounds that you will henceforth be taxed before paying for your alimony. Hence, there will be nothing like alimony payments in your deductions. The only individuals that will not be affected by the enactment of this tax law are those that were able to get a divorce before it was enacted. But, if you divorced after the introduction of this law you are in big trouble. There are so many individuals that were in hurry to get a divorce before the enactment of this tax law. This is because, with alimony deductions from their income, they would be able to save so much money.
The tax collection agency has been able to make requirements for which a person who got a divorce prior to this law will be able to meet. This is if the person is interested in getting alimony deduction. You will be able to find some of the requirements beneath.
You will only receive the deduction when you have a divorce that is written.
You can only pay the alimony to your ex-husband or ex-wife.
If you are divorced you should not live in the same house with your ex-wife or ex-husband.
The alimony deduction will end if one of the party dies.