If you are paying business debts or leases that you’ve personally guaranteed or sales taxes through the Chapter 13 plan, you may be able to deduct these expenses from your taxable income.
Can I lower my Chapter 13 payment?
Answer: If your income goes down during your Chapter 13 bankruptcy and you can no longer afford your monthly plan payment, you can to ask the court to modify your plan and reduce your payment amount.
When is alimony not a tax deductible payment?
Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018.
Is there a change in tax treatment for alimony?
In other words, there’s no change in the federal income tax treatment for people who executed their divorce agreements before 2019. Alimony is still considered taxable income for the recipient, and it’s tax deductible for the payer. However, for these payments to qualify as deductible alimony, payers must still meet certain requirements.
Do you have to include alimony in your income?
Receiving spouses must include the alimony or separation payments in their income. Beginning Jan. 1, 2019, alimony or separate maintenance payments are not deductible from the income of the payer spouse, or includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after Dec. 31, 2018.
When do you no longer have to report alimony as income?
Starting in the 2019 tax year, alimony payments are no longer deductible—nor does the recipient have to report them as income. That’s because the Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2017, eliminated the alimony deduction from the tax code from 2019 through 2025. However, there are some exceptions.
