Those in Michigan who divorced in 2019 and have yet to file their taxes will want to note some important changes to tax law that might affect them. Specifically, those who pay or receive alimony and those who have minor children should be aware of how filing their 2019 taxes is different now than it has been in years past.
For those who divorced in 2019, those who pay alimony can no longer deduct these payments from their taxes and those who receive alimony no longer must count these payments as taxable income. This is the opposite of how alimony payments were treated tax-wise in the past. It is important to note that this change only applies to those whose divorce decrees were signed after December 31, 2018.
Those who pay or receive child support will also want to take note that those who pay child support cannot deduct these payments from their taxes and those who receive child support do not have to count these payments as taxable income. In addition, while parents can no longer take dependency exemptions, those who have custody of a minor child can still claim the $2,000 child tax credit. A person’s divorce decree should state which parent can claim that credit.
This post is for educational purposes only and does not contain legal advice. Those who divorced in 2019 will want to review their divorce decrees carefully to make sure they understand how their divorce will affect their tax filings this year. Area attorneys can be a useful source of information on divorce and taxes.