Part 7 Tax Cut and Job Act “TCJA”

Tax Cut Jobs Act TCJA, alimony deductions, New Jersey alimony   Tax Cut Jobs Act TCJA, caused a lot of problems last year and it also affected divorces drastically. It denied the deductibility of alimony and this caused a lot of problems. 2018 was an extremely busy year because most people getting a divorce wanted agreements signed prior to year end. Some states may still allow alimony deductions, currently, New Jersey does not but may change Projected to raise an additional $6.9 billion over the next 10 years Changes alimony, divisor 1/3 to ¼, Remember just because alimony is no longer deductible for divorces that are settled after 2018, alimony still deduction for those signed before 2019. Most people don’t realize that alimony has to meet certain requirements. And we’ve handled a few audits of alimony and the government is pretty strict in what is considered alimony.