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?

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Quizplus · Accepted Answer

Under the tax law prior to 2019, alimony payments are deductible by the payer and taxable to the recipient. Bev can deduct the $48,000 in alimony payments from her gross income, and Leon must include this amount in his gross income. Child support is neither deductible by the payer nor taxable to the recipient.

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