Spousal Support Changes and the New Tax Code
By Ron J. Anfuso, CPA, ABV, CFF, CDFA, FABFA
The most crucial change established under the Tax Cuts and Jobs Act of 2017 (TCJA) related to family law went into effect on January 1, 2019. Previously, under section 215 of the tax code, paying spouses could deduct their alimony payments from their taxable income while recipient spouses were required to pay taxes on the alimony they received. This provided an advantage to the spouses to pay less tax because spouses with lower income would typically fall within a lower tax bracket.