“Currently, alimony is taxable for the recipient but not the payer. The spouse paying the alimony can deduct it from income before the adjusted gross income is figured. (This is known as an “above the line” deduction.) The recipient then pays taxes on the alimony received. Going forward, however, this would be reversed: Alimony will be paid with aftertax dollars, and the recipient will not have to pay taxes on it.” The full article can be found here: http://news.morningstar.com/articlenet/article.aspx?id=844758
GOP Tax Plan Eliminates Tax Deduction on Alimony (Spousal Support)GOP Tax Plan Eliminates Tax Deduction on Alimony (Spousal Support)
“On Wednesday, November 1, 2017, the House finally released their proposal for tax reform and one item on the list is to eliminate the deductibility of spousal maintenance/alimony for payors.
“A controversial proposal from officials in Gov. Scott Walker’s administration to reduce the amount of money wealthy parents pay in child support remains stalled nearly a year after the rule