The federal tax law enacted December 22, 2017 is almost 280 pages long (continuing the American tradition of making tax loss complicated) contain some provisions that will have impact on people getting divorced.

ALIMONY
The tax laws passed by the federal government recently make a number of changes with respect to alimony. The most important changes in the law, which currently takes effect January 1, 2019 and is set to expire December 31, 2025, repeals the deduction for alimony so that it will no longer be deductible by the payor and will not be included in taxable income for the payee.

PERSONAL EXEMPTIONS
Parties will no longer be able to decide between themselves who will be allowed to take personal exemptions for the children - this because no one gets to claim personal exemptions. There will be only the standard deduction. That however, will be doubled to $12,000 per individual; $24,000 for a married couple. This law is effective January 1, 2018 and is set to expire December 31, 2025.

CHILD CARE TAX CREDIT
The new law doubles the child care tax credit as well as increases income limits. The credit itself has been increased from $1000-$2000 per child per year. The income limits for the parents have been increased from $75,000 per year to $200,000 per year for unmarried people; and from $110,000-$400,000 for taxpayers that are married and filing jointly.

529 PLANS
As of January 1, 2018 these plans are no longer limited to savings for higher education expenses but now can also be used for elementary or secondary education expenses including public, private or religious schools. There is also a cap of $10,000 per student per year from all 529 plans combined.

HELOC INTEREST
Beginning January 1, 2018 the only interest payments on home equity lines of credit will be when those funds are used for "acquisition purposes." In some circumstances "acquisition purposes" will include improvements to the residence. Interest payments on a mortgage will still be deductible.