Comments on: Alimony Tax Changes in 2018 https://www.normanlawjax.com/alimony-tax-changes-in-2018/?utm_source=rss&utm_medium=rss&utm_campaign=alimony-tax-changes-in-2018 Wendy Norman Tue, 28 Jan 2020 19:14:35 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Wendy Norman https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-1244 Tue, 28 Jan 2020 19:14:35 +0000 https://www.normanlawjax.com/?p=1004#comment-1244 In reply to Lisa J.

Thank you for contacting Norman Law. Based on your message, it appears that you are in Illinois. I cannot give any advice or make recommendations about the laws in Illinois, other than to suggest you contact a lawyer there. You may be able to request that your alimony be modified or increased based on your circumstances. As for the tax change regarding alimony, unfortunately that is federal law and applies to all the states until it is changed by Congress. I wish you the best of luck and hope you are able to find an attorney in Illinois that is able to help you.

]]> By: Lisa J https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-1241 Mon, 27 Jan 2020 13:23:42 +0000 https://www.normanlawjax.com/?p=1004#comment-1241 I was divorced on August 31, 2018 in the state of Illinois And I was awarded alimony at 30% of my exs income. I can’t afford health insurance. During the divorce I had to have a stent put in my coronary artery and had only 6 months to live without the stent. It is now 2020 and I need stents put in my carotid artery . With the health market ( Obama care) selling expensive insurance. I can’t not afford to go to the doctor. The first year after the divorce I paid 18,000 in doctor bills with Obama care. Why should people divorced are January 1 of 2019 be excempt and the rest of have to pay. Not fair in the least. Can’t afford the taxes and can’t afford health insurance and my DHS office says they won’t help me. What do I do?

]]> By: Wendy Norman https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-1000 Wed, 03 Jul 2019 14:27:53 +0000 https://www.normanlawjax.com/?p=1004#comment-1000 In reply to Dawn Geda.

Thank you for contacting Norman Law. Florida does not recognize legal separation and we do not have separation agreements, so if you have a separation agreement, I can only conclude you are not in Florida and, therefore, Florida law would not apply. In general, pursuant to federal tax law regarding alimony, if an agreement has not been formally approved pursuant to a court order or judgment entered on or before December 31, 2018, the alimony is not taxable income to the recipient and is not a tax deduction to the payor. I hope this helps. For further guidance, I recommend you talk to an attorney in your state.

]]> By: Dawn Geda https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-999 Tue, 02 Jul 2019 17:00:43 +0000 https://www.normanlawjax.com/?p=1004#comment-999 What if your alimony award is not awarded through a Judgment or Order, but through a Settlement Agreement/Separation Agreement between the two spouses? Signed prior to 12/31/2018? Thank you for your information and help.

]]> By: Wendy Norman https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-851 Thu, 28 Feb 2019 00:05:12 +0000 https://www.normanlawjax.com/?p=1004#comment-851 In reply to WALTER G BOUCHARD.

Mr. Bouchard,

Thank you for contacting Norman Law. I don’t know which website you are looking at, but the alimony law has changed effective 1/1/2019. The law change does not impact prior alimony awards finalized by the court, but going forward alimony is not a taxable event for either party. If you have further questions, you may wish to speak with a CPA or tax attorney.

Wendy Norman

]]> By: WALTER G BOUCHARD https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-850 Wed, 27 Feb 2019 21:46:03 +0000 https://www.normanlawjax.com/?p=1004#comment-850 How come the IRS website is still showing that alimony is deductible???

https://www.irs.gov/taxtopics/tc452

]]> By: Wendy Norman https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-846 Wed, 20 Feb 2019 17:31:20 +0000 https://www.normanlawjax.com/?p=1004#comment-846 In reply to Carol Lucisano.

Ms. Lucisano,

Thank you for contacting Norman Law. Your question actually calls for an opinion regarding tax matters, and I am not a tax attorney nor a CPA. That being said, I can tell you that alimony payments prior to 12/31/2018 (and going forward, if based on a judgment or order entered prior to 12/31/2018) are taxable income to the recipient. I would encourage you to speak to a tax attorney or CPA regarding the $10,000 retained by the collection attorney.

Wendy Norman

]]> By: Carol Lucisano https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-843 Mon, 18 Feb 2019 19:45:58 +0000 https://www.normanlawjax.com/?p=1004#comment-843 I collected $40K in past alimony with a court judgment. I paid the collection attorney $10K. I never received the $10K as the attorney deducted it prior to sending me a check for $30K. Do I need a W-9? Is the $10K deductible?

]]> By: Wendy Norman https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-809 Mon, 07 Jan 2019 16:26:36 +0000 https://www.normanlawjax.com/?p=1004#comment-809 In reply to M Rodriguez.

Thank you for contacting Norman Law, Ms. Rodriguez. If you are receiving alimony pursuant to a final judgment entered by the Court prior to 1/1/2019, your alimony is considered taxable income for 2018 and all future tax years. The new law only applies to new alimony awards entered by the Court commencing 1/1/2019.

]]> By: M Rodriguez https://www.normanlawjax.com/alimony-tax-changes-in-2018/#comment-805 Sun, 06 Jan 2019 03:17:42 +0000 https://www.normanlawjax.com/?p=1004#comment-805 If I am understanding this correctly, when I file my 2018 returns in 2019, My alimony will still be taxable income?

]]>