Las Vegas Review-Journal (Sunday)
▶ MORRISON
the act “suggests that many politicians intend to get divorced by 2019.”
Fortunately, it won’t change my taxes because I’ve never been divorced, but I thought this could be worthwhile information since Nevada ranks seventh-highest in number of divorces per 1,000 people. Many will not be aware of these ramifications.
Alimony payments have been deductible for 75 years. Some tax and divorce experts predict that the change could result in less spousal support and in divorced couples paying more in taxes. But it will be a while before the results are known.
Divorce lawyers need to bone up on the changes in the tax code, and spouses about to become ex-spouses should at least take these changes into consideration.
A few things to know:
■ Don’t think you can divorce and live in the same home for the tax benefits. That won’t be legal.
■ Child support doesn’t change. It’s not tax deductible now and isn’t
income to the parent caring for the child. It’s set by a formula.
■ It’s not legal to pay higher child support in order to be able to deduct payments, the Internal Revenue Service warned.
So why reverse this element of the tax code? According to The Associated Press, the House Ways and Means Committee described the alimony deduction as a “divorce subsidy” because a divorced couple might pay less in their combined taxes than a married couple might. Government officials also said repealing the deduction will add $6.9 billion in new tax revenues over 10 years.
Personally, I hope no one decides to divorce before the end of 2018 because they think it will give them an advantage in negotiations. I’ve seen people keep working on their marriage and actually succeed. That’s the best result.
The Beatles’ “We Can Work It Out” always resonated with me.