NEW YORK (AP) - Congress' giant tax overhaul is poised to reach virtually every corner of American life - even Splitsville.
Republicans delivered their sweeping plan Wednesday to an exultant President Donald Trump to sign. One provision scraps a 75-year-old tax deduction for alimony payments.
The new rules won't affect anyone who divorces or signs a separation agreement before 2019.
After that, the spouse paying alimony can't deduct it, but the spouse receiving the money no longer has to pay taxes on it.
Congressional tax writers say the change is only fair to married couples.
Many divorce experts worry it will make negotiations tougher and lead to less spousal support as cash goes to taxes instead. They say the current setup helps exes handle the expenses of running separate households.
(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
- New tax system could alter alimony
- GOP leaders alter tax bill to win more votes
- Bail system failed system? Governor calls for changes
- The IRS' online filing system is having problems ... on tax day
- Tax filing deadline nears
- Cuomo tax returns show $55K in taxes, $11K in donations
- Congress wrestles with tax reform
- Tenney Speaks on Tax Bill
- A permanent tax refund investment
- NY making millions available in push for geothermal systems