Alimony payments are:
A)Taxable to the payer at ordinary income rates and is tax-deductible by the recipient
B)Taxable to the recipient at ordinary income rates and is tax-deductible by the payer
C)Taxable to both the payer and recipient at ordinary income rates
D)Is tax-deductible by both the payer and recipient
E)None of the above

Question

Quizplus · Accepted Answer

Alimony payments are taxable to the recipient at ordinary income rates and are tax-deductible by the payer, according to the current tax laws.

Alimony Payments Are