Final answer:
The incorrect statement about alimony is that it is another term for child support. Alimony and child support are different; alimony was tax-deductible for the payer and taxable for the recipient, but changes in the law have altered this for post-2018 agreements. Child support is neither deductible nor taxable.
Step-by-step explanation:
The statement that is NOT correct regarding alimony is c. Alimony is another term for child support. The key differences between these two terms are that alimony is a financial obligation paid to an ex-spouse after a divorce and is considered taxable income for the recipient and tax-deductible for the payer, under certain conditions. However, child support is a payment made specifically to support one's non-custodial children; it is not tax-deductible for the payer and not included as taxable income for the recipient.
It's important to note that as of 2019, due to changes brought about by the Tax Cuts and Jobs Act, for divorce or separation agreements executed or modified after December 31, 2018, alimony payments are no longer deductible for the payer, and not included in the income of the recipient.
The terms regarding the deductibility of alimony can have significant tax implications, and it's essential to understand the distinction between alimony and child support when navigating post-divorce finances.