Implications of the most recent tax code on alimony in the state of NJ
What is the impact of the changes in the tax code?
Beginning January 1st, 2019, there was a change to the tax code which affected payment of alimony. Alimony used to be tax-deductible to the person paying it and tax-deductible to the person receiving it as if it was income. With the change in the new tax code that has been eliminated, so now alimony is no longer tax-deductible and no longer taxable. What this does is that creates a scenario for attorneys where we have to calculate alimony differently, because what we used to do was calculate alimony based on gross numbers, not net numbers because we were factoring in the tax implications of paying alimony and receiving alimony while it certainly cannot and will not ever give you tax advice and we´ll always encourage the clients to consult with an accountant as to any questions related to taxes on calculating alimony.
Should I consult with a Family Law Attorney?
There are new considerations that attorneys have to make with the change in the tax code. I encourage you if you have questions with regards to alimony, whether you are paying it or receiving it that you contact our firm so we can answer those questions for you and make sure you have all of the information that you need going forward.
Contact our Morris County Family Law Attorneys
Our Family Law Firm is up-to-date with the information in the recent changes in the law to provide legal assistance in your particular case. We will be available for clients in Morris County and surrounding communities including Morristown, Madison, Randolph, East Hanover, Denville, Florham Park, Tewksbury, Rockaway, and across Northern New Jersey.
For a confidential and comprehensive case assessment regarding your alimony related issues or any other family law matter, contact us online or call our Morristown offices by dialing (973) 718-7705 today.