Illinois Legislature Seeks to Address Impact of Tax Law Changes on Maintenance Deductions


Under Illinois' current maintenance (spousal support) formula in 750 ILCS 5/504, a payor can deduct maintenance payments from his or her income taxes and a recipient is taxed on payments received. For maintenance orders entered on or after Jan. 1, 2019, the new federal tax code establishes that maintenance payments will no longer be tax deductible to the payor or taxable to the recipient. To minimize the financial impact of this shifting tax burden, Senate Bill 2289 seeks to reduce maintenance payments made by a paying spouse to a recipient spouse. On April 24, 2018, SB 2289 was sent to the House after passing in the Senate by a vote 52-0. For more information about Senate Bill 2289... (read more)