Pennsylvania ex-spouses who had to pay alimony have long benefited from the ability to deduct alimony expenses from their net income. This benefit made alimony payments a lot more palatable -- especially when payments served to drop the payer down to a lower tax bracket. With the new federal tax bill passed by Congress last month, however, the ability to deduct alimony payments from income is going to end.
Fortunately, divorcing spouses will have until the end of 2018 to complete their current divorces and still benefit from the tax deduction benefit. Marriages that come to a close in 2019, however, will be subject to the new tax codes. This means that -- for any divorce that finalizes after year-end 2018 -- those who receive spousal maintenance checks will no longer need to include this money on their income tax statements; and, those paying spousal maintenance will no longer be able to deduct this money from their income tax statements.