Tax plan-alimony deduction gone

[zico20]

The Republicans are going to eliminate the alimony deductions for people who pay it. I wonder what brainless idiot came up with this idea. Lets look at a hypothetical example. If someone is making 50,000 a year and pays 1000 month/12,000 year to their ex their taxable income started at 38,000 before any other deductions. Now it will revert back to 50,000. Millions of people in the middle class are going to get royally screwed. I get there is a lower tax percentage but the difference won't be enough when you take into account the other deductions that are going to go bye bye. Millions of people will be paying higher taxes in the middle class thanks to this. I know a few people who pay alimony and they are going to get the shaft.

Creative lawyers are going to come up with this. If a couple have children there will be no more alimony payments alongside child support. It will all be put under child support so the greedy government doesn't get their hands on it. Also, if a divorce is amicable then alimony will be done privately so couples are not getting screwed by the government. A divorcing couple can always make a confidential agreement where one pays the other without the government knowing about it. A safety clause can be put into the divorce saying alimony can be brought again before a court if need be.

Taxes are going to go up for millions of middle class people because of this. There is no logic in the person receiving it to have to declare it as income and pay taxes while the person paying it doesn't get to deduct it. That is criminal.

Am I missing something here?

[davew]

the recipient does not have to declare it as income


divorce lawyers will be busy renegotiating settlements

[zico20]

the recipient does not have to declare it as income


divorce lawyers will be busy renegotiating settlements

Are you saying under the new tax law that the person receiving it will NOT have to pay it? How is that fair to the person paying it?

[Tom]

I wonder what brainless idiot came up with this idea.


The motto of the GOP!
That should be enshrined in marble somewhere. :pound:

[AndyC]

Are you saying under the new tax law that the person receiving it will NOT have to pay it? How is that fair to the person paying it?

That's correct.

[AndyC]

the recipient does not have to declare it as income


divorce lawyers will be busy renegotiating settlements

They better not renegotiate, that would put the settlement under the new rules. Old settlements play by the old rules.

[davew]

Are you saying under the new tax law that the person receiving it will NOT have to pay it? How is that fair to the person paying it?

only affects divorces after Dec 31 - does not affect you if you are paying/receiving now


It is fair because everyone is going to have a lower tax rate


that is my understanding, but still not a law yet and senate is too busy doing other stuff to pass bills or look at stuff House has already passed

[porchy44]

The Republicans and Democrats alike have been stealing from future generations as far back as I can remember. This is through the deficit increasing yearly. The GOP plan now is no different. It has become obvious that
our country has no intentions of ever paying back our national debt.

[forced89]

We may not like this but it makes sense from the Government's perspective. Payer of alimony is usually in a higher tax bracket; Recipient is usually in a lower tax bracket. Now the person in the higher tax bracket gets to deduct the dollars paid and the recipient is either in a lower tax bracket or pays no taxes at all. Reverse this and the Government gets more income.

[Tom]

Blatantly absurd.
You pay taxes on the money when you earn it, then again when you pay it out??? What is this, Trump's double - scoop?

This government is 100% useless.
No wonder wealthy people move their money off shore - rightfully so. I thought Trump understood this. If he does, and he signs this moron bill, he deserves to be impeached.

[zico20]

We may not like this but it makes sense from the Government's perspective. Payer of alimony is usually in a higher tax bracket; Recipient is usually in a lower tax bracket. Now the person in the higher tax bracket gets to deduct the dollars paid and the recipient is either in a lower tax bracket or pays no taxes at all. Reverse this and the Government gets more income.

Of course it makes sense from the government's perspective. It still doesn't mean it isn't criminal and unjust. Complete BS that a person is essentially getting taxed at a much higher rate.

[zico20]

Blatantly absurd.
You pay taxes on the money when you earn it, then again when you pay it out??? What is this, Trump's double - scoop?

This government is 100% useless.
No wonder wealthy people move their money off shore - rightfully so. I thought Trump understood this. If he does, and he signs this moron bill, he deserves to be impeached.

:ThmbUp::ThmbUp::ThmbUp::ThmbUp::ThmbUp:

[Tom]

Of course it makes sense from the government's perspective. It still doesn't mean it isn't criminal and unjust. Complete BS that a person is essentially getting taxed at a much higher rate.

We went to war with England over far less than this.....

[davew]

I wonder if 'til death do us part' will become more literal?