Wbasny Chapters

Section 612 Tax Law Amendment

Position Statement

Governor Cuomo’s Budget Proposal to Amend Section 612 of the Tax Law

Strongly Support

WBASNY strongly supports the Governor’s budget proposal to “decouple” the State tax law from the new Federal tax law by amending Section 612 of the Tax Law to subtract from the payor taxpayer’s adjusted gross income any alimony or maintenance payments, and to add any such payments received to a payee taxpayer’s adjusted gross income.

Recent changes to Federal tax law eliminated the decades-old Tax Code provisions making payments of spousal maintenance tax deductible to the payor and includable as income to the payee.  These provisions were historically instrumental in the settlement of matrimonial cases.  This proposal would allow for New York State tax law to remain consistent.

New York State’s current maintenance guidelines law took into consideration the federal and state tax laws that were in place at the time.  Thus, we believe decoupling the New York State tax law from the new federal law would reduce the impact this federal change will have on these cases. In addition, the budget proposal will assist the matrimonial bar and bench in reducing the duration and expense of matrimonial cases by enabling settlements, as the former Federal law did for over seventy years.