The marriage chamber is grappling with the effects of a tax bill passed by Congress and signed by President Trump in late 2017 that removes the ability for divorcing spouses to make taxable and payer-deductible maintenance payments to the payee. Spouses professionals have long used the alimony allowance to help our clients and promote settlements. However, the 2017 law abolishes the deduction for marriage contracts concluded after December 31, 2018.
New York lawmakers softened the federal amendment and threw in a few twists and turns. The state budget makes alimony deductible from state and New York City taxable income, even if the federal withholding agreement came too late. Additionally, loopholes in state law sometimes allow one party to enjoy a deduction without the other party reporting income in order to get tax savings that federal law did not allow before 2017 and even to deduct the same payment twice.
This content has been archived. It is available through our partners LexisNexis® and Bloomberg Law.
To view this content, please go to their websites.
Why am i seeing this?
LexisNexis® and Bloomberg Law are third online distributors of ALM’s extensive collection of current and archived versions of legal news. LexisNexis® and Bloomberg Law customers can access and use ALM content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other legal sources.
If you have any questions, call 1-877-256-2472 or contact us at [email protected]