In 2018, many divorcing couples in Pennsylvania rushed to finalize their divorce before new tax laws took effect on January 1, 2019. Why was this? CNBC notes that at the start of 2019, alimony payments were no longer tax deductible under the tax reform. In contrast, the person receiving the income no longer has to claim it as taxable income.
Women in Pennsylvania are often shocked to find that they may be responsible for paying alimony after divorce. In fact, according to MarketWatch, more women are paying alimony than ever before. In a recent survey, 45 percent of lawyers reported an increase in women paying for spousal support.
Much has been said about the new tax law passed through Congress and signed by President Donald Trump in December, both positive and negative. One aspect that seems to be affected and could impact the next year is how the law changes the taxes associated with alimony.