Ways your spouse may be hiding assets in your divorce
Governor Trying to Lessen Impact of Tax Plan
If you’ve been keeping up with the roller coaster of news surrounding the new federal tax plan, you may find your head spinning. Items were being introduced and taken away as Republican Congressional leaders attempted to get the plan passed. One of the things that has stuck around despite many revisions is the change to deductions.
Under current tax law, people who pay alimony to an ex-spouse are permitted to use those payments as deductions when tax time rolls around. The person who receives alimony must count the payments as income and, as such, pay taxes on the amount paid. Under the new tax plan, the deductions on alimony will be repealed. Those who receive the payments will no longer be taxed.
The loss of the alimony deduction is only one such repeal found in the new tax plan. Maryland’s governor, Larry Hogan, understands that the new plan could negatively impact citizens of the state and he has proposed legislation to curb the pain. Under his proposal, the Governor would make it so that any additional revenue received by the state would be returned to taxpayers.
In a meeting earlier this week, the governor stated, “Our goal will be to leave that money in the pockets of hardworking Marylanders.” It was not immediately clear how this would be accomplished because the comptroller’s office is still analyzing just how the tax plan will affect people in the state should it pass. Once the research is complete, the governor’s office will be doing what they can to lessen its impact on people paying and receiving alimony and others who may be negatively affected.
If you have questions about divorce or alimony in Howard County, MD, please reach out to our office. We are happy to answer your questions and advise you of your legal options.
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