Tax Consequences of Spousal Maintenance Payments
Trusted and Experienced Illinois Attorneys Since 1966
Spousal maintenance income can wreak havoc on families' finances. How? Spousal maintenance income is taxable. For instance, if you make $40,000 in wages in one year and receive another $40,000 in spousal maintenance income:
- You will owe taxes on $80,000 of income at tax time though you may only have paid taxes throughout the year on $40,000
- Your tax bracket will likely raise from about 24 percent to 29 or 30 percent
In other words, receiving maintenance resembles having a job that does not pay out taxes. Careful financial planning is needed.
If you are contemplating divorce or have been divorced and have questions regarding the tax consequences of spousal maintenance income, contact the Chicago law firm of the Law Offices of Elliot Heidelberger for experienced legal help.
Attorneys Elliot Heidelberger and Kurt Hurtgen have helped hundreds of families anticipate, address and resolve divorce tax consequences. To contact us, call 630-289-4000, 847-289-4000, or 312-443-8003.
Do you wish to get an idea of how much money you will have left at the end of the month following a divorce? We have computer programs available that will calculate payments and tax expenses regarding:
- Your full income
- The number of kids you have
- Deduction for mortgage interest and real estate taxes
- Other factors
As part of our divorce law services we often complete an almost full tax return to help clients calculate available income and the tax consequences of alimony income. To learn more about our firm and divorce and tax law, contact our firm at our Hanover Park or downtown Chicago office.
Contact Us
If you need family law legal help in the Chicago area, contact the experienced and committed lawyers of the Law Offices of Elliot Heidelberger. Call 630-289-4000, 847-289-4000, or 312-443-8003.
