The Great Unknown…Alimony

picture of hands writing divorce papers

The Great Unknown…Alimony On January 1, 2019, Congress passed the Tax Cuts and Jobs Act (TCJA), which eliminated the deductibility/taxability of alimony. Unlike some other portions of the TCJA that will lapse after 5 years,  this change (alimony no longer being deductible by the payer and taxable to the recipient) appears to be permanent, at least until the law changes again. The State of New Jersey continues to allow alimony payments to be deductible/taxable. Prior to the commencement of 2019, a payment of alimony was deductible by the payor and taxable to the payee. Essentially, former spouses ended up with

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