After his divorce in 2015, Jeff was required to pay $18,000 per year to his former spouse, Darlene, who had custody of their child.Jeff's payments will be reduced to $12,000 per year in the event the child dies or reaches age 21.During the year, Jeff paid the $18,000 required under the divorce agreement.Darlene must include the $12,000 in gross income.

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Darlene must include the $12,000 in gross income if the child dies or reaches age 21, but during the year in which Jeff paid the full $18,000 required under the divorce agreement, this does not apply.

After His Divorce in 2015, Jeff Was Required to Pay