Under the terms of a divorce agreement,Bev was to pay her husband Leon $4,000 per month in alimony and $1,500 per month in child support.For a twelve-month period,what is the amount that Bev can deduct from gross income and Leon must include in gross income?

Question

Quizplus · Accepted Answer

Bev can deduct the $4,000 per month in alimony payments from her gross income for a total of $48,000 for the year. Leon must include the $4,000 per month in alimony payments in his gross income for a total of $48,000 for the year. The $1,500 per month in child support payments are not deductible by Bev and not included in Leon's gross income. Therefore, the total amount that can be deducted and included is $48,000.

Under the Terms of a Divorce Agreement,Bev Was to Pay