While virtually all Pennsylvania taxpayers will find that changes are in store when it comes to filing their taxes this time around, Pennsylvania residents who divorce in 2019 or later will likely notice additional variations in the way they file. At Beroes Law Center, we are well-versed in how recent tax law changes are affecting divorced and divorcing couples, and we have helped many clients navigate these and numerous other divorce-related issues.
According to Fox Business, the Tax Cuts and Jobs Act will significantly impact how alimony payments come into play during tax time moving forward. Before, the spouse who had a higher income could deduct the amount he or she paid in alimony on his or her taxes, while the spouse who was getting alimony would report the income.
If your divorce becomes official in 2019 or beyond, however, the higher-earning spouse in your marriage will no longer have the opportunity to deduct alimony expenses on his or her taxes. Another aspect of filing your taxes you can expect to change moving forward is the manner in which you report any children you share. Previously, you and your former spouse would need to figure out who was going to claim any children you shared as dependents.
Starting this year, however, there will no longer be an exemption for dependents available to you, because the Child Tax Credit has taken its place. While these are some of the major changes that may impact divorcing couples when they file their taxes, please note that this is not an exhaustive list of all relevant divorce-related tax changes. You can find more about divorce on our webpage.