Sure expenditures incurred throughout dissolution of marriage proceedings could qualify for a discount in taxable revenue. As a common rule, private bills related to a divorce should not deductible. Nevertheless, charges paid for authorized recommendation straight associated to securing alimony, or spousal assist, are probably deductible as a miscellaneous itemized deduction, topic to limitations imposed by legislation. As an illustration, if authorized counsel is retained to barter the quantity of alimony to be obtained, the portion of the charges particularly attributable to these negotiations could also be claimed as a deduction.
The provision of such a deduction is influenced by modifications in tax legislation. Traditionally, miscellaneous itemized deductions exceeding 2% of adjusted gross revenue have been deductible. This supplied taxpayers with a method to offset among the monetary burden of divorce. Current tax laws has quickly suspended the deductibility of those miscellaneous itemized deductions, impacting the power to assert this specific kind of expense. Understanding the present tax code is due to this fact paramount when figuring out eligibility.
