Barney and Betty got divorced in 2018. In the divorce decree Betty agreed to pay Barney $24,000 per year for five years (or until Barney's death or remarriage)and $10,000 per year until their daughter, Pebbles, turns 19 years old. What amount (if any)is included in Barney's gross incomein 2020?

Question

Quizplus · Accepted Answer

The $24,000 payment is considered alimony, which is taxable to Barney. The $10,000 payment is child support, which is not taxable.

Barney and Betty Got Divorced in 2018