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. It also, contains details on those that have already gotten a divorce. There are those people that get into a marriage to solely get a divorce. This is so that they may be able to get the alimony payment deductions. If you are among these people, you ought to find if you have been affected by the introduction of this new law. Before the enactment of this law, one would be able to reduce the taxable amount of money by the alimony. Nonetheless, the IRS was able to take care of everything if you did not remove the alimony payments from the taxable income. However, for the alimony to be reduced from your taxable money, there are some conditions that you were to meet. therefore, in the old way, you were to include the alimony payments in the money that you would be taxed.
There have been a lot of changes since this new tax law was introduced. This is because the previous deductions that were done on alimony payments 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. Therefore, your deductions will not have the payments you make to alimony. The only people that will benefit are those that got a divorce before the introduction of this tax law. 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 board that deals with tax collection as made some regulations to help determine those people that are viable to receiving alimony deductions. This is for those individuals that want to have alimony payments deducted from their income. You will be able to find some of the requirements beneath.
Deductions will only be applicable to those with a written divorce.
The alimony is paid to a person that was your ex-spouse.
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.