If you wish to receive spousal support in Washington, you may be worried about how this impacts your taxes. This is something you need to be 100% clear on so that you know exactly how to file your taxes and how much you owe each year.
When it comes to tax laws, every state is very different, which is why you need to understand how spousal support impacts your Washington taxes specifically. To do this, you need to hire an experienced attorney who can guide you through this legal process. At Allen | Fischer PLLC, we provide down-to-earth legal representation and help our clients get the best results for their cases.
What is Spousal Support in Spokane?
Spousal support is a type of court-ordered payment that is ordered in a divorce. The intent of spousal support is to lessen the financial hardship of the dependent spouse. Depending on the situation, the spousal support could last for only a short time or indefinitely.
Spousal support is usually ordered when there is a significant gap in the earning potential between the spouses. One example of this is if one spouse was the main provider while the other spouse stayed at home.
Washington considers many things when deciding on spousal support, such as the duration of the marriage, your mental and physical health, your age, and your financial resources. To get the spousal support you deserve, you will need to hire legal representation to help you prove that this is a necessity during your divorce.
Understanding Spousal Support and Taxes
To understand how spousal support impacts your taxes, you need to look at Washington law. Before the Tax Cuts and Jobs Act of 2017, how taxes impacted your spousal support was very different.
Before, spousal support payments were tax deductible for the spouse who was paying them. It was also considered to be a taxable income for the person receiving the payments. Spousal support is no longer a taxable income for the spouse receiving the payments as it is not included in your gross income.
In Washington, spousal support does not have a direct impact on either spouse’s taxes. Washington residents who receive spousal support no longer have to claim it as an income source, and those who pay spousal support can no longer report it as being tax deductible.
Another thing to keep in mind is that this change to the law only applies to divorce agreements finalized after January 1, 2019. Any divorce agreements before this date are still subject to the old regime.
Hire the Best Legal Representation at Allen | Fischer
If you believe that you qualify for spousal support in Washington, you will want to begin your case to get the process started. For many people, this may be a necessity if they are very dependent on their spouse for the majority of their marriage.
At Allen | Fischer PLLC, you are guaranteed experienced and personal legal representation and guidance. For a dedicated and compassionate approach to your case, reach out to Allen | Fischer PLLC at (509)-283-1806.
