Alimony in Tax Reform

Abstract

The proposed changes to the current tax treatment of alimony do not take family law into account and would have the unintended effect of reducing alimony transfers. Although the current tax treatment of alimony has a substantial influence over matters of family law, its impact on the public fisc is small. If the goal of the proposed modifications is to preserve revenue, enforcement of section 71 is a better approach than denying special tax treatment to alimony.

Keywords: tax reform, tax, alimony deduction, alimony, family law, tax law, domestic relations