Under the terms of a divorce agreement, Kim was to pay her husband Tom $3,000 per month in alimony and $2,000 per month in child support.For a twelve-month period, Kim can deduct from gross income (and Tom must include in gross income):

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For tax purposes, alimony payments are deductible by the payer and are included in the recipient's gross income. Child support, on the other hand, is not deductible by the payer and is not included in the recipient's gross income. Therefore, in this scenario, Kim can deduct a total of $36,000 ($3,000 per month of alimony x 12 months) from her gross income, and Tom must include the same amount in his gross income. The $24,000 of child support is not deductible by Kim and is not included in Tom's gross income.

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