Sue Moss, Carl Wu and Maryanne Koussa wrote a helpful article for the New York Law Journal on the intricacies of the New York spousal support (maintenance) guidelines.
New York Law Journal: Accounting for the TCJA: Now That Spousal Support Is Not Taxable Nor Deductible on Federal Tax Returns, Should the New York State Maintenance Guidelines Be Modified?
The formula created to determine the New York spousal support (maintenance) guidelines was created assuming that the support calculated would be fully taxable to the payee and deductible to the payor. Two years after the implementation of this formula, the federal government passed a law that spousal support in all 50 states would no longer be a taxable event (e.g., such payments would no longer be taxable nor deducible). Yet, New York state has not revised its formula to account for this change. This is significant because this change in law could theoretically increase or decrease the support amount under the formula by 50%. This article will examine what, if anything, should be done about this change.
The formula created to determine the New York spousal support (maintenance) guidelines was created assuming that the support calculated would be fully taxable to the payee and deductible to the payor. Two years after the implementation of this formula, the federal government passed a law that spousal support in all 50 states would no longer be a taxable event (e.g., such payments would no longer be taxable nor deducible). Yet, New York state has not revised its formula to account for this change. This is significant because this change in law could theoretically increase or decrease the support amount under the formula by 50%. This article will examine what, if anything, should be done about this change.
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