When your Massachusetts marriage ends, your life will change in countless ways, and while some of those changes will likely involve adjusting to new living or custody arrangements, others involve tax-related considerations. At Kajko, Wiseman & Colasanti, LLP, we are well-versed in the significant tax law changes that will impact you and others who divorce this year or moving forward, and we have helped many people navigate this and other hurdles that arise amid divorce.
According to Fox Business, one of the most notable tax law changes that will affect those who divorce this year and beyond involves alimony. Up until the start of 2019, any party that ended up paying his or her former spouse alimony could deduct the amount given from his or her taxable income, resulting in a nice tax benefit for anyone paying alimony.
Nowadays, though, the person paying alimony no longer enjoys this benefit, meaning there are essentially no real benefits to having to pay alimony. Therefore, many divorcing parties who are going through divorces will fight even harder to not have to pay alimony, and this can lead to long and potentially highly contentious courtroom battles.
While the alimony change is a significant one that will affect many people across Massachusetts and the nation who divorce this year and hereafter, there are other tac changes that take effect this year could impact you. For example, you will no longer receive an exemption by claiming your child as a dependent, because the child tax credit has replaced these exemptions. You can learn more about navigating your way through a divorce on our webpage.