Alimony Tax Deduction Repeal Delayed
As part of the U.S. Congress’ drive to reform the tax system, one issue that kept on arising was whether the alimony tax deduction would be repealed. The House of Representatives passed a version of the tax bill that included a repeal for divorces finalized after December 31, 2017, while the Senate version of the bill included no alimony tax deduction repeal.
In conference, both houses agreed on a final bill that includes the repeal. However, it will only take effect for divorces that occur after December 31, 2018.