The IRS rules around alimony changed in 2019, so divorced couples in Florida should understand the tax implications that the Tax Cut and Jobs Act may have for them. The effects of the law on their situation will depend, in part, on when they reached a divorce agreement. The provisions in the new law affect some couples who have already divorced but not all of them.
Deducting alimony payments
The Tax Cut and Jobs Act, or TCJA, changed the rules about alimony for some Americans. Anyone who divorces between 2019 and 2025 will not be able to deduct the alimony payments that they make. However, people who divorced and entered into spousal support agreements before December 2018 will still be able to deduct their alimony payments.
Reporting alimony payments
On the flip side, people who receive alimony payments must now report them on their tax returns. They do not need to report child support or non-cash settlements in the form of property. They do need to report anything classified as a separate maintenance payment.
Amending prior tax returns
Anyone who pays or receives alimony in Florida may want to review their recent tax returns. It may be possible to file an amended return if you realize you made an error. Tax changes as comprehensive as the ones in the TCJA are complicated, so it’s easy to make a mistake.
It’s important to get professional advice about your divorce and the support schedules that are in place after it’s finalized. Finding an experienced attorney may help ensure that you understand tax code changes and meet all the requirements under the law.