The potential tax consequences of divorce
On behalf of Stange Law Firm, PC posted in divorce on Tuesday, February 11, 2020. Individuals in Kansas and throughout the United States whose divorces were finalized after Dec. 31, 2018, don’t need to claim alimony payments as income. Conversely, those making the alimony payments doesn’t get a tax break for doing so. If a person doesn’t have to claim alimony as income, it may be easier to qualify for public services or generous health insurance subsidies. However, that person is not allowed to contribute alimony payments to an IRA. This may have an impact on the recipient’s ability to