Posted on 11/07/2017 12:19:30 PM PST by Mariner
Since details of the new tax overhaul bill were released on Nov. 2, people of all income levels and ages have been trying to figure out how they could be affected going forward. One group of folks not likely to be happy: those paying alimony.
Section 1309 of the House bill would eliminate the deductibility of alimony. Killing the alimony deduction is one of the smaller revenue targets for the House Republican tax bill, yet it is exceedingly significant to the people affected.
Under current rules, alimony payors may deduct their payments from their taxable incomes, thus lowering their income taxes. In return, recipients pay income taxes on their alimony income. Because payors are usually in higher tax brackets and recipients in lower tax brackets, families can save money on taxes by shifting the tax burden to the lower earner. The saving can help increase cash flow for divorcing couples. They can then decide how to allocate the savings: to the payor or the recipient ... or the court can do it for them.
According to the House, abolishing the alimony deduction would not be a large revenue generator. Over 10 years it raises only about $8 billion. That is because the tax increase on payors is offset by a tax decrease for recipients. For them, alimony income would no longer be taxable.
This wrinkle could have a significant impact on divorce settlements. For many payors, saving taxes on alimony payments is the one pain relief that comes with making the payments. According to John Fiske, a prominent mediator and family law attorney, "Alimony is the greatest tax deduction ever." Without the deduction, payors will find it much more expensive and more difficult to agree to pay.
(Excerpt) Read more at yahoo.com ...
Divorce is destructive of society. The government should not be favoring it...for the same reason it should not be favoring other things that are legal but destructive of society.
“How bad does that suck?”
The suckage in this one is strong.
“The government should not be favoring it”
Then you must be supportive of eliminating Child Support too.
That enables women to divorce.
“If youre paying $3,200/mo in spousal support it will put you in the 25% or 35% bracket.”
35% hands down. YAY! My taxes will go up more than $13,000!
If wishes were horses and all that. A lot of things wouldn’t be the way they are.
Well, this certainly impacts me and I'll tell you upfront I'll quit my job and leave the state. Divorce judges seldom (if ever...) pursue ex spouses across state lines, especially if they have no job, work for cash, etc.. Screw the Republicans if they do this.
Let’s add spiderpig to the pantheon of the screwed over by Congressional Republicans.
Now, a question for all of you: I assume you’ve voted Republican for most of your lives as you made enough money to pay spousal support (ha ha).
If this bill passes, will you vote Republican again?
see my #68
Factually incorrect, not surprising coming from Yahoo. Fact is, for many payors less than half the forced at the point of a gun alimony is tax deductible.
Not only do I pay taxes on the FULL amount that I NEVER GET TO SEE in the first place, the worthless EX pay taxes on it as ordinary income too.
The fed's are double-dipping.
And then (today) I only get to deduct about 40% of the alimony from my taxes, again for money I NEVER GET TO SEE in the first place.
“Divorce judges seldom (if ever...) pursue ex spouses across state lines”
Oh, they don’t have to.
The IRS will enforce it now, just like Child Support.
F'em.
Not if I don’t work and there’s noting to enforce.
“for many payors less than half the forced at the point of a gun alimony is tax deductible”
If it’s alimony, it’s deductible.
What enables women to divorce are no-fault divorce laws and liberal judges who award them “lifetime support” of thousands of dollars a month because they refused to get off their fat, lazy, no good asses and work, period.
No, it’s not all deductible. It’s not dollar for dollar.
Ok. They didnt 20 years ago
Actually not. In many, if not most cases, the taxing it on the man's income will generate more revenue to the Feral government because it will be at a higher rate. I suspect this is just a sneaky way to slide in an effective tax increase.
Alimony and similar payments should be taxed at the recipient as income because they are the ones benefiting from it.
alimony and child support are two completely different things.
So when are men going to unite and do something about it, rather than by their silence and inaction consent to themselves and their sons being subject to that system?
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