The Latest: GOP plan to cut alimony deduction gets House OK

By The Associated Press Markets Associated Press

The Latest on a House Republican plan to eliminate the tax deduction for alimony (all times local):

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2:20 p.m.

A proposal to eliminate the tax deduction for alimony that has raised concerns among divorcees and women's advocates has been approved by the U.S. House as part of a sweeping Republican tax package.

The House approved the nearly $1.5 trillion package on Thursday. The plan to drop the alimony tax deduction remains in limbo, however, because it's not included in the Senate tax proposal that GOP leaders hope to pass early next month.

The proposal also calls for no longer taxing alimony recipients for the payments they receive. It would affect divorces finalized on or after Jan. 1.

Divorcees, family lawyers and women's advocates say they're concerned the loss of the deduction would lead to tougher divorce negotiations and less spousal support for women.

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10:41 a.m.

A congressional proposal to eliminate the tax deduction for alimony is generating concerns about higher taxes for men and less spousal support for women. That's pushing some soon-to-be ex-spouses to try to get their cases resolved before the changes would take effect Jan. 1.

The House Republican tax reform plan would ditch the deduction, and alimony recipients would no longer be taxed on the payments they receive. Lawyers say the result could be higher taxes for alimony payers and less money available for them to pay alimony.

The changes only would apply to divorces finalized after 2017, but could affect existing divorce agreements modified after this year.

Republicans are expected to push the tax legislation through the House on Thursday. The Senate tax proposal wouldn't change current alimony tax law.

Lawyers say eliminating the tax deduction could make difficult divorce negotiations worse.