Those agreements or judgments made prior to December 31, 2018 will not be affected.Under the current system, the spouse who pays alimony (also known as maintenance/spousal support) gets to deduct the amount from his or her federal tax filing.For instance, if someone pays $10,000 annually in spousal maintenance, that amount is subtracted from that person’s income, and the remaining amount is taxed.The one receiving spousal maintenance pays taxes on the alimony received, but usually at a lower tax rate than the one providing maintenance, since it is usually the higher income spouse who ends up paying the lower income party.The intent and result was to make the funds paid between the parties go further by reducing the amount that goes to taxes.Now, alimony will be treated the same as child support, whose payment has never been tax deductible.A big issue going forward, then, is how to handle the conflict that may arise when one spouse cannot provide the full amount of support needed by the other spouse. Categories: Editorial, OpinionA provision in the federal tax bill recently signed by President Donald Trump will seriously impact divorcing couples in 2019.The bill eliminates tax deductions for alimony payments — a provision that has been in place for 75 years.Without this provision, both spouses lose money in different ways. The spouse paying alimony will be unable to claim a deduction that could save thousands of dollars, and the spouse receiving alimony may receive less money as a result.For any separation agreement or divorce decree issued after December 31, 2018, the federal tax deduction goes away. This has traditionally been a sticking point in divorce negotiations, but removing the tax deductible aspect from spousal maintenance could increase the amount of acrimony between the two sides and lead to longer, more emotional negotiating processes or hearings.If the amount winds up being too high for the spouse providing alimony, payments could be delayed or missed altogether, which leads to arrests, court actions and even prison sentences.The spousal support formula passed by New York state several years ago calculates alimony based on income and presumed the tax deductibility option would factor into the calculations.With that tax benefit phasing out, the question is whether or not New York will review and modify its mathematical formula to compensate for the change.Because the elimination of the federal tax deduction on alimony payments only affects couples who execute separation agreements or finalize their divorces on or after Jan. 1, 2019, it is recommended that you discuss the advisability of finalizing matters before New Year’s Day rolls around again.Barbara J. King, Esq. is a partner with Tully Rinckey PLLC in Albany. More from The Daily Gazette:EDITORIAL: Find a way to get family members into nursing homesEDITORIAL: Urgent: Today is the last day to complete the censusEDITORIAL: Thruway tax unfair to working motoristsEDITORIAL: Beware of voter intimidationFoss: Should main downtown branch of the Schenectady County Public Library reopen?
Facebook Twitter Google+ Published on April 17, 2017 at 4:44 pm Contact Charlie: [email protected] | @charliedisturco Senior faceoff specialist Ben Williams has been named ACC Defensive Player of the Week following bounce back performances against Cornell and North Carolina.Once battling a slump due to a nagging injury, Williams’ turnaround has helped No. 1 Syracuse (10-1, 4-0 Atlantic Coast) keep its ranking for the second week in a row. Williams finished the week 34-of-50 on faceoffs as Syracuse improved its win streak to eight games.SU’s dominant force at the X thrived Tuesday against Cornell, winning a season-best 76 percent of faceoffs and grabbing 11 ground balls. Against then-No. 17 North Carolina, he kept his turnaround alive, winning 15-of-25 at the X. He added seven ground balls and won 10 of the last 12 faceoffs en route to a come-from-behind overtime victory.Williams and the Orange host Binghamton for Senior Day on Saturday at 2 p.m. in the Carrier Dome. Comments AdvertisementThis is placeholder text