Tax Consequences of Spousal Maintenance

Trusted and Experienced Illinois Attorney 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 Chicago lawyer Elliot Heidelberger for experienced legal help.

Elliot Heidelberger has helped hundreds of families anticipate, address and resolve divorce tax consequences. To contact Elliot Heidelberger, call (847) 497-5020.

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 Naperville, Hanover Park and Chicago offices at (847) 497-5020

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If you need family law legal help in the Chicago area, contact the experienced and committed lawyer Elliot Heidelberger. Call (847) 497-5020