Important Tax Changes for 2019 Divorces
Excerpt: The Tax Cuts and Jobs Act of 2018 changed tax rules for divorced couples in a few important ways. Learn what they are in our latest post.
If you’re like most people, the mere mention of “April 15th” is probably enough to make you wince. April 15 is, of course, tax day in the United States, and if you’ve been putting off thinking about it, now is a good time to start. There have been a number of changes in the tax code during the last two years, but today we’re going to take a look at a few new ones for this year that exclusively impact divorced couples.
Changes to Alimony
In the past, alimony payments were tax-deductible, and alimony recipients had to include alimony payments in their taxable income. Beginning in 2019, the reverse is true. The Tax Cuts and Jobs Act of 2018 switched the tax burden for alimony from the recipient to the payor. This means that alimony payments are no longer tax-deductible, and alimony recipients no longer need to pay income tax on those payments.
Tax Deductions for Children
The same act has increased the Child Tax Credit (CTC) per child from $1,000 to $2,000; however, only one parent may claim the child as a dependent—typically the parent with the greater share of custody. The law also raised the income thresholds for single filers to receive this credit from $75,000 to $200,000.
Stay on Top of Your Taxes with a Skilled Tax Attorney
There’s no doubt about it: Taxes are complicated. Fortunately, you don’t have to go it alone. Working with a tax attorney is the best way to ensure that your taxes are filed accurately, on time, and save you as much money as possible. John L. Davis, PLLC has helped countless Vancouver, Washington individuals and businesses get through tax season with confidence and ease. Call (360) 597-4740 today to schedule an appointment for your needs.