Question

Select all that apply. For divorce decrees entered into in 2021 alimony is ______. (Check all that apply.)

a. Deductible for the payer

b. Nondeductible for the payer

c. Taxable income for the recipient

d. Excludable from the recipient's gross income

Answer 1

For divorce decrees entered into in 2021, alimony is nondeductible for the payer and excludable from the recipient's gross income.

Option B&D.

Step-by-step explanation:

For divorce decrees entered into in 2021, the correct answers are:

• Nondeductible for the payer
• Excludable from the recipient's gross income

Under the Tax Cuts and Jobs Act of 2017, for any divorce agreement executed after December 31, 2018, alimony payments are no longer deductible for the payer and are no longer considered taxable income for the recipient.

This means that for divorce decrees entered into in 2021, alimony is nondeductible for the person making the payments and is not included in the gross income of the person receiving the payments.