Separated individuals should be aware of tax law changes that take effect in 2019 (and affect 2019 tax returns), caution US Tax Professionals in Vancouver
North Vancouver, BC -- (ReleaseWire) -- 10/18/2019 -- US Tax Professionals in Vancouver has just published an article on how changing tax laws will impact divorce and alimony payments in 2019. For more information, go to: https://us-taxprofessionals.com/newsletter.php#2
Divorce and separation can be painful on both an emotional and financial level. As people go through the process of rebuilding their lives, it's quite natural that the tax situation would be the last thing on anyone's minds. However, it's more important than ever to consider, as changes to tax legislation will impact 2019 tax returns.
Tax rules regarding divorce and separation can and do change. To complicate matters further, most court decisions do not account for the effects that divorce or separation has on an individual's tax situation. In the case of a recent divorce or separation, it's a good idea for Canadians and Americans doing business cross border to review the situation with an accountant who's knowledgeable in filing US taxes for Canadian citizens, and vice versa.
The new rules relate to alimony or separate maintenance payments under a divorce or separation agreement, and includes all taxpayers with:
- Divorce decrees
- Separate maintenance decrees
- Written separation agreements
For example, for agreements executed beginning January 1, 2019, under the new laws alimony or separate maintenance payments are not deductible from the income of the payor spouse. They are also not includable in the income of the receiving spouse, if made under a divorce or separation agreement executed after December 31, 2018.
Unfortunately, divorce is often a painful situation and the changing tax laws have made it more so. For Canadians or Americans who are living cross border and need to reassess their tax situation, the team at US Tax Professionals in Vancouver can provide guidance, insight, and support. Call (604) 281-3318 to get started.
About US Tax Professionals
US Tax Professionals provide tax services for dual American and Canadian citizens in Vancouver. Founded in 2013, they specialize in taxation for US citizens and expats, taxation and accounting for business, cross-border taxation for US and Canadian citizens, as well as accounting and taxation of alternative investments, including private equity funds and hedge funds.
For more information, visit https://www.us-taxprofessionals.com/ or call (604) 281-3318.
US Tax Professionals
Company Website: https://www.us-taxprofessionals.com
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Email: Click to Email Mark Schiffer