Asked by Steven Gudiel on Jun 05, 2024
Verified
Rick and Lenora were granted a divorce in 2016.In accordance with the decree,Rick made the following payments to Lenora in 2017: Child support payments contingent on the age of the child $4,000Annual cash payments other than child support $6,000\begin{array}{lr}\text {Child support payments contingent on the age of the child }&\$4,000\\\text {Annual cash payments other than child support }&\$6,000\\\end{array}Child support payments contingent on the age of the child Annual cash payments other than child support $4,000$6,000
How much should Lenora include in her 2017 taxable income as alimony?
A) $10,000.
B) $6,000.
C) $4,000.
D) $0.
Taxable Income
The portion of an individual's or entity's income used to determine how much tax is owed to the government, after all deductions and exemptions.
Child Support Payments
Payments made by a noncustodial parent to a custodial parent, guardian, or state, intended to facilitate the care and support of their children.
Cash Payments
Transactions where the payment for goods or services is made using currency or banknotes rather than checks or electronic transfers.
- Identify the differences in tax treatment between alimony and child support payments.
Verified Answer
Learning Objectives
- Identify the differences in tax treatment between alimony and child support payments.
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