As a result of the December 2017 federal income tax bill, starting January 2019, alimony payments, which Illinois calls maintenance, are no longer tax deductible by the payer and taxable to the recipient. In response, the Illinois State Bar Association Family Law Section Council, of which Attorney Michael Strauss is Secretary, created a small committee to revise the Illinois law on maintenance.
Under the current formula in 750 ILCS 5/504, a payer can deduct maintenance payments from their taxes, while the recipient is taxed on payments received. Since the tax burden will shift January 1, 2019, the committee has been working on a modification to reduce maintenance payments made by the payor to the recipient to reflect the tax adjustment.
Michael Strauss is one of ten attorneys working on changes with the ISBA Family Law Section Council and is co-author. To date, the committee has drafted a proposed bill, Senate Bill 2289, which has been passed by the committee of the Illinois senate that is responsible for this type of legislation. The proposed bill is now slated to be presented to the entire Illinois senate for passage the week of April 16.