Alimony changes under new tax reform

Local

The 2018 federal tax reform will change the taxation of alimony.

Alimony is no longer tax deductible for the person making the payments, or included as income on the taxes of the recipient.

“That benefit ended as of January 1, which now means if someone pays alimony, it is not deductible, and if someone receives that alimony, they do not have to include it in their income,” said attorney Maria Cognetti, owner of Cognetti and Associates in Camp Hill.

People who finalized their divorce or separation before December 31, 2018, will not be affected by the change.

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