Information on Alimony Deductions on Your 2019 Tax
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. The enactment, on the other hand, talks about those persons that had a divorce before it became into law. There are some evil-minded people who will want to get into a marriage so as they be able to ask for a divorce. This is due to the fact that they will be able to save a lot of money if they get the alimony 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. 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. Hence, you were to put your alimony payments in the money you would be taxed.
The introduction of this new law on taxes has brought about many changes. This is due to the fact that the alimony deductions were removed. Hence, for those individuals that are going to pay taxes after the introduction of this law, you will pay handsomely. 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 people that will benefit are those that got a divorce before the introduction of this tax law. For those that got a divorce after the law became operational you will have to suffer by paying a lot of money. There are a lot of persons that were able to get a divorce before the commencement of this law since they knew it would have affected them greatly. 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 will be for those persons that want alimony deductions. You will be able to find some of the requirements beneath.
You have to have a written divorce to get the deductions.
The payment is made on or for the spouse that was your ex-wife or ex-husband.
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.