Q&A

When does a spousal support order become deductible?

When does a spousal support order become deductible?

So, if you modify a spousal support order after January 1, 2019, it will be deductible to the payor-spouse and included as income to the payee-spouse provided the post January 1, 2019 order specifically states it is deductible to the payor-spouse and included as income to the payee-spouse.

How are spousal support payments treated on taxes?

This means that the spousal support recipient (“Payee”) treats those support payments as taxable income (since the support payments constitute income pursuant to the Tax Code. On the other side of the spectrum, the person making the spousal support payments (“Payor”) treats those payments are 100% tax deductible.

When does spousal support tax deduction end 2019?

Prior to the 2019 change, The IRS provided a useful negotiation tool, making spousal support tax deductible to the paying spouse; this will all end on January 1, 2019.

Is there a California tax break for spousal support?

California Tax Treatment of Spousal Support While the new federal TCJA changed tax treatment for alimony payments in 2019, California still allows a deduction for the spouse who pays alimony and inclusion to income for the recipient spouse.

So, if you modify a spousal support order after January 1, 2019, it will be deductible to the payor-spouse and included as income to the payee-spouse provided the post January 1, 2019 order specifically states it is deductible to the payor-spouse and included as income to the payee-spouse.

This means that the spousal support recipient (“Payee”) treats those support payments as taxable income (since the support payments constitute income pursuant to the Tax Code. On the other side of the spectrum, the person making the spousal support payments (“Payor”) treats those payments are 100% tax deductible.

Prior to the 2019 change, The IRS provided a useful negotiation tool, making spousal support tax deductible to the paying spouse; this will all end on January 1, 2019.

When does spousal support go into effect in Oregon?

It is important to note that any Modification after December 31, 2018, to a pre-existing court order re spousal support will likely be subject to the new laws. So, if you have an order in place before 2019, the old regulations still apply. But if you modify the order after the new tax plan takes effect, you’re likely subject to the new rules.