March 2018 JD Supra

Since the early 1940’s, alimony payments have been tax deductible for the Payer Spouse.  The recipient of the alimony (Recipient Spouse) paid the income tax on the alimony payments.  The Tax Cuts and Jobs Act (TCJA) puts an end to a deduction for alimony payments by the Payer Spouse and corresponding inclusion in income of the Recipient Spouse in any divorce or separation instrument executed after December 31, 2018.