Alimony is: A) deductible by the payer. B) included in income by both the payer and the payee. ...
Question:
Alimony is:
A) deductible by the payer.
B) included in income by both the payer and the payee.
C) included in income by the payer and deducted by the payee.
D) an item that does not affect the payer and the payee's tax reporting.
Alimony Payments:
Alimony is defined for income tax as payments an individual is legally obliged to make to their former spouse. The income tax consequences of alimony payments changed with the Tax Cuts and Jobs Act of 2017.
Answer and Explanation: 1
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The correct option is C) for all divorce or separation agreements executed on or before Dec. 31, 2018, and D) for all divorce or separation...
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Income Tax: Tax Liability & Deductions
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Chapter 3 / Lesson 5
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Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.
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