 Obviously the recipient would benefit from getting the money, but from a tax standpoint they'd have to pay taxes on it So they would like to get the money and not have to pay taxes on it now after the cutoff date of December 31st 2018 they removed that rule so that the recipient wouldn't have to include it in income whether Alimony or child support and the payer doesn't get the benefit of taking the deduction for alimony or child support For after the cutoff date, which you might think would be Non-advantages for the payer. It's not fair to pay her but again my argument would be well Obviously if you change the tax code and everybody knew what the tax code was I think the agreement would be different Before obviously because you would say well there's tax consequences We're going to take those into account and that's going to adjust the amount of payments that are going to go from one to the Other and then if there's a divorce agreement that happened after the cutoff date as long as it's not retroactively Changing what happened before to the agreements that happened before it makes sense that you would just change the divorce agreement an agreement and it should be more easily to do that Without with the taxes just get out of the way taxes. Just stay out of it. Just stay out of it Okay, Iris just stay out of it for crying out loud. I think that makes more sense actually but so let's if so let's say what's imagine we had an agreement before the Date and we're gonna say so this is the alimony the recipient name. I'm just gonna say just Just whatever I'll just say recipients last name Anderson recipients social security number which we have to give the IRS to because they have to show it get the income on their side Let's say it was let's say it was 15,000 or whatever and the date. We're gonna say is on 0101 17 before the cutoff date of December 31st 2018. I'm gonna say, okay Roll on over roll it on over and there it is. So now we've got this deduction We paid the alimony it was agreed upon before you changed the law and therefore I this person gets to deduct Mr. Anderson the 15,000 so the 15,000 is gonna roll down to the bottom here and then on the 1040 We're gonna have the 100,000 the 15,000 deducted to get to the adjusted gross income the AGI the 85,000 12,950 still the standard deduction getting us down to the 7250 on the recipient side as we saw on the income Presentation and section they would have to include the alimony received in that situation It has to be that symmetry if someone gets the deduction someone else has to have the income is the general rule You would think let's just put that into our Excel worksheet over here because because why not? So we're gonna say this is an adjustment to income and let's add. I'll just add a line item for alimony Alimony That's not spelled right. There's no way there is no way that you spilled. Well, I did is that really it? Did I do it right? Yeah, I still can't believe it You're too stupid to be able to spell alimony. No, it's right. What are you talking about? I know what I'm talking about Okay, so then we're gonna say this is gonna be this is gonna be this one and and Let's just put it on the outside assuming we only have one alimony payment We're not paying multiple people alimony in our worksheet although you could set a worksheet with that multiple alimony So I'm sure that comes up So we'll say 15,000 and then we'll sum that up and that'll pull into the page one of the form 1040 So we've got the 100,000 minus the 15,000 gets us to the 85,000 12,000 950 and the standard deduction gets us down to the 72,050 and So if I pull that on over that mirror mirror mirror on the wall is what we have here 72,050 page to calculation of the tax 11 474 11 474 And that gets us down 15,000 withheld to the three five two six three five two six There we go. So that's just an example Of the alimony bottom line It was more difficult before the cutoff date if you haven't if you have an agreement that happened before the cutoff date You'll probably be able to see it from prior year tax returns And you can just copy the same kind of process going forward And if the divorce agreement happened after that time period and people ask you about child support versus alimony What am I going to do? What are the tax consequences? I think they're trying to pull one over on me with this complicated tax stuff Hopefully it'll be an easier situation. You could say and and you could help them out to to say It's actually the tax the taxes are staying out of it. It should be easier. Hopefully Going forward, but we never know what the tax code could change suddenly. You never know, but that's how it is now