Tax Bill: No More Pennsylvania Alimony Deductions in 2019

Alimony will no longer be tax deductible for payors for divorce or separation agreements signed after December 31, 2018. This is according to the new tax bill passed by Congress and signed by the President in 2017.

Consequent to this tax change, recipients of alimony who, according to an Associated Press story are 98% female, will no longer need to report alimony as income for agreements or finalized divorces after December 31, 2018.

If alimony is not a part of a divorce settlement, the tax bill does not change anything.

This reverses a tax policy that has been in place more than 50 years. Spouses who are in the process of divorcing or have put off finalizing their property settlement agreement should hurry to do so in 2018 if alimony is expected to be part of the divorce.

There is alimony in Pennsylvania. I have previously written about how it is calculated in our state. The Pennsylvania laws have not changed as to how alimony will be calculated or the jurisdictional judge’s discretion in doing so. Recall that in Pennsylvania, divorces are adjudicated at the county level.

What will change most definitely is the payor’s willingness to agree to negotiated alimony without that tax deduction. Conversely, the intended recipient of alimony will push harder for a source of income upon which they no longer have to pay taxes.

I can help with your divorce, your negotiations and your final divorce legal documents. Call my office at 215-345-5259 for a free first divorce consult.

– Elissa C. Goldberg, Esquire

Law Office of Elissa C. Goldberg
107 North Broad Street, Suite 211
Doylestown, PA 18901
Phone: 215-345-5259
Fax: 215-345-7458