Barney and Betty got divorced in 2018. In the divorce decree Betty agreed to pay Barney $59,700 per year for five years (or until Barney's death or remarriage)and $14,400 per year until their daughter, Pebbles, turns 19 years old. What amount (if any)is included in Barney's gross income in 2020?

Question

Quizplus · Accepted Answer

Under the tax law prior to 2019, alimony payments are included in the recipient's gross income. Since the divorce occurred in 2018, the $59,700 alimony payment is included in Barney's gross income. The $14,400 is child support and is not included in gross income.

Barney and Betty Got Divorced in 2018