Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30,2010,Richard was required to pay Alice $1,500 per month of which $600 was designated as child support.He made 12 such payments in 2017.Additionally,Richard voluntarily paid Alice $1,200 per month for 12 months of 2017,no portion of which was designated as child support.Assuming that Alice has no other income,her tax return for 2017 should show gross income of:

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The $1,500 monthly payments include $600 designated as child support, which is not taxable. The remaining $900 ($1,500 - $600) is taxable alimony. For 12 months, this totals $10,800 ($900 x 12). The additional $1,200 monthly payments are not designated as child support and are considered taxable alimony, but since they are voluntary and not part of the divorce agreement, they are not included in gross income.

Richard and Alice Are Divorced and Under the Terms of Their