Asked by Mikey Grauso on Apr 28, 2024
Verified
The following income item is not taxable:
A) Jury duty.
B) Sick Pay.
C) Child support.
D) Alimony.
Child Support
Financial payments made by a non-custodial parent to a custodial parent, guardian, or state to support the child’s well-being and living expenses.
Taxable Income
Taxable Income is the portion of an individual's or corporation's income used to determine how much tax is owed to the federal, state, or local government.
- Separate taxable earnings from non-taxable ones, encompassing corporate dividends and social security benefits.
Verified Answer
DW
Dylan WalterMay 01, 2024
Final Answer :
C
Explanation :
Child support payments are not considered taxable income for the recipient. This is because these payments are intended to help cover the costs associated with raising a child and are not seen as income for the parent receiving them.
Learning Objectives
- Separate taxable earnings from non-taxable ones, encompassing corporate dividends and social security benefits.
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