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NEW YORK (AP) — The Latest on what the tax overhaul means for alimony payments (all times local):
11:40 a.m.
Congress' giant tax overhaul is poised to reach virtually every corner of American life — even Splitsville.
President Donald Trump signed Congress' giant tax overhaul on Friday, including a provision that scraps a 75-year-old tax deduction for alimony payments.
The new rules won't affect anyone who divorces or signs a separation agreement before 2019.
After that, the spouse paying alimony can't deduct it, but the spouse receiving the money no longer has to pay taxes on it.
Congressional tax writers say the change is only fair to married couples.
Many divorce experts worry it will make negotiations tougher and lead to less spousal support as cash goes to taxes instead. They say the current setup helps exes handle the expenses of running separate households.
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12 a.m.
Congress' giant tax overhaul is poised to reach virtually every corner of American life — even Splitsville.
Republicans delivered their sweeping plan Wednesday to an exultant President Donald Trump to sign. One provision scraps a 75-year-old tax deduction for alimony payments.
The new rules won't affect anyone who divorces or signs a separation agreement before 2019.
After that, the spouse paying alimony can't deduct it, but the spouse receiving the money no longer has to pay taxes on it.
Congressional tax writers say the change is only fair to married couples.
Many divorce experts worry it will make negotiations tougher and lead to less spousal support as cash goes to taxes instead. They say the current setup helps exes handle the expenses of running separate households.
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