The Tax Cuts and Jobs Act of 2017 (TCJA) was enacted on December 22, 2017, as part of the fiscal year 2018 Budget Reconciliation Resolution. Several provisions of the TCJA will affect individuals, including those who divorce, because it reduces or repeals individual income tax deductions and exemptions. Significantly, the TCJA repeals the deduction for alimony payments. Congress was not concerned with the effect of its legislation on the national debt beyond 10 years, so many (but not all) of the provisions affecting individual income tax brackets and deductions will expire in 2025. Read on to learn about how the TCJA can affect your clients and your practice.
Attorneys, especially those who practice in the area of family law, should be aware of the following.