Decades-Old Maintenance Deduction Eliminated By New Tax Law
Late last year, President Trump signed the GOP's tax bill into law. While it has been lauded in some circles as a welcome tax break for American workers and businesses, changes to the tax code will make getting divorced more expensive for maintenance payors by removing a deduction in place since 1942.
Beginning on January 1, 2019, former spouses that pay maintenance will not be able to deduct the payments from their taxes. This change only applies to orders or settlements signed after January 1, 2019.
Under the new tax law, not only will maintenance payors be unable to deduct the payments from their taxes, payees will not have to report the money as income. This will change the calculations under Illinois's new maintenance statute, which are based on the gross incomes of both spouses.
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You are invited to represent ISBA alongside the Standing Committee on Marketing & Communications by marching in the 2018 St. Patrick’s Day in Chicago on March 17. An annual tradition for ISBA, walking alongside our mobile billboard is a great opportunity to represent the association and our lawyers to the public.
The Illinois Supreme Court will hear oral arguments in two cases at the University of Illinois at Urbana-Champaign's Krannert Center for the Performing Arts on Thursday, March 15, at 10:30 a.m.