Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2009, Richard was required to pay Alice $1,500 per month of which $600 was designated as child support. He made 12 such payments in 2016. Additionally, Richard voluntarily paid Alice $1,200 per month for 12 months of 2016, no portion of which was designated as child support. Assuming that Alice has no other income, her tax return for 2016 should show gross income of:

Question

Quizplus · Accepted Answer

Alice received $7,200 in child support from Richard in 2016 ($600 per month x 12 months). This amount is not taxable to Alice. 
In addition, Richard voluntarily paid Alice $14,400 ($1,200 per month x 12 months) in 2016. Since none of this amount is designated as child support, it is considered alimony. 
For tax purposes, Alice's gross income would be $10,800 ($7,200 child support + $3,600 alimony).

Richard and Alice Are Divorced and Under the Terms of Their