How Will Divorce Affect My Taxes?
Whether you are looking forward to your life after divorce, or are devastated that your marriage has ended, it is undeniable that your life will be drastically different than it was before you and your spouse separated.
With the new Tax Reform laws that went into effect in 2019, even the way you file your taxes after getting divorced will change. Continue reading to learn more about what you can expect if you are finalizing your divorce after Dec. 31, 2018.
How Alimony Will Impact Your Tax Refund
As of Jan. 1, 2019, individuals who are paying alimony to their former spouse will not be able to deduct their monthly payments as they did in the past.
This means you will no longer see an increase in your tax refund due to your paid alimony. Additionally, when the Tax Cuts and Jobs Act took effect early this year, alimony payees are now no longer required to report their support as taxable income.
Does Child Support Affect Taxes in Indiana?
The good news is that despite all of the changes that were implemented this year, child support will remain a non-issue when it comes to filing your taxes.
The parent paying child support will not deduct their payments on their tax return, and the parent receiving child support will not report it as taxable income. Child support has long been, and will likely continue to be for the sole benefit of the children, and therefore not included as part of your taxes.
Work With an Indiana Divorce Lawyer
For assistance with all of your family law and divorce needs in Indiana, you can get help from a qualified attorney at Rowdy G. Williams Law Firm. You can come in for a complimentary case review today when you give our office a call at 1-812-232-7400 or fill out the contact form at the bottom of this page and one of our representatives will be in touch as soon as possible.