Laura and Leon were granted a divorce in 2013.In accordance with the decree, Leon made the following payments to Laura in 2018: Child support payments contingent on the age of the child
Annual cash payments, other than child support, specified as alimony in the divorce agreement How much should Laura include in her 2018 taxable income as alimony?

Question

Quizplus · Accepted Answer

Laura should include $6,000 in her 2018 taxable income as alimony. This is because alimony payments must be separate from child support payments in order to be deductible by the payer and taxable to the recipient. In this case, the child support payments are separate from the alimony payments specified in the divorce agreement. Therefore, only the annual cash payments that were specified as alimony should be included in Laura's taxable income.

Laura and Leon Were Granted a Divorce in 2013