Tax Law Change

[jbird]

I know that prior to the change, a WSF donation was 80% tax deductible; apparently, there was an assumption or estimate (consistent with IRS guidelines) that 20% went toward the personal benefit of season ticket priority, and so that 20% was not deductible.

But, if tax deductions and IRS refunds are of interest, my advice is for family "breadwinners" to get divorced. The tax deductible alimony........now called "maintenance" in Illinois........paid off big time for my tax refund; but I suppose when I net that refund against the $3,000-plus monthly payments it's not such a bargain.

We'll see how many of the oft-criticized "blue hairs" love the program more than they want/need the WSF tax deduction. As ISU Class of 1982, my hair is not yet blue; although I just had my 8 years anniversary of neurosurgery followed by radiation that makes the color of my hair nearly a moot point. In any event, with the tax deductibility of monthly maintenance payments and other itemized church and charitable contributions, I am "fortunate" enough that the change in tax laws affecting WSF will not diminish my financial support for the program, but I recognize that the change will likely cause others to re-assess their WSF contributions and I will not be throwing stones. It will be unfortunate if the revenue from private donors shrinks at the same time that the State of Illinois is financially screwing my alma mater.

I think they got rid of the alimony deduction for future agreements.

Trust me.......I know the answer to this. My divorce and maintenance tax deduction is 'grandfathered." The new tax law is doing away with those deductions, but only for divorces that take effect after either 01/01/2018 or maybe 01/01/2019 (I forget which). If it's 01/01/2019, yuse guys are on the clock for less than 8 months. No grounds for divorce are required in this state anymore; you just have to chant the magic words "irreconciable differences."

 

[Bird Friend]

you just have to chant the magic words "irreconciable differences."

If we have irreconcilable differences with other members of this board, can we divorce them and still get the tax benefit?