Reconsidering the Tax Treatment of Alimony
Tax Notes, Vol. 162, No. 3, pp. 299-300, January 21, 2019
3 Pages Posted: 9 Jan 2019 Last revised: 22 Mar 2019
Date Written: December 20, 2018
The Tax Cuts and Jobs Act of 2017 has significant implications for the more than one million Americans divorcing each year. One such consequence taking effect in the New Year is the repeal of §§ 215 and 71, which allowed the deductibility of alimony payments by the payor and included them in the payee spouse’s income. However, these code provisions were good public policy for divorcing couples by incentivizing alimony, and their repeal should thus be reconsidered.
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