In this concise and informative episode of Dr. Friday’s Tax Tips – One Minute Moment, Dr. Friday, a seasoned tax expert and president of Dr. Friday’s Tax and Financial firm, delves into the significant tax changes that occurred at the end of 2018, particularly focusing on divorce and its implications on alimony and child support. She explains the pivotal shift in how alimony payments are treated for tax purposes post-2018 divorce settlements, contrasting it with the previous regulations. Additionally, she touches on the tax treatment of child support, a long-standing rule in tax law. This episode is essential for anyone navigating the financial complexities of divorce, providing clarity on how these changes might affect their tax obligations. For personalized advice, Dr. Friday encourages listeners to reach out to her team directly.
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial firm. To get more info go to www.drfriday.com. This is a one-minute moment.
We had some big changes again at the end of 2018, first of 2019, divorce. Up until that point if you paid somebody alimony, the person paying would reduce it, would take it off as a tax deduction, and the person receiving would actually pay tax on it. Now it’s a little different. If you are not, if you’ve divorced after the end of 2018, then you now don’t pay tax and the person paying it doesn’t get to deduct it. Same thing with child support which has never been a deduction on the tax return. So if you’re not sure if you should or should not be reporting it, you need to call us at 615-367-0819.
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