Question

Duke and his wife were legally divorced in2021 after the divorce duck retained physical custody of their son. Duke received the following amounts form his ex wife on behalf of their son court ordered child support of2,000 per month and alimony 1,000 per month how much of this income should be reported on dukes federal return

Answer 1

Duke would not report either the alimony or child support payments as income on his federal tax return; alimony is not taxable for divorces finalized after December 31, 2018, and child support is traditionally not considered taxable income.

Step-by-step explanation:

The question relates to which types of income should be reported on a federal tax return after a divorce, specifically concerning child support and alimony payments. Under the Tax Cuts and Jobs Act of 2017, for divorces finalized after December 31, 2018, alimony payments are no longer deductible for the payer and are not considered taxable income for the recipient.

As a result, Duke would not report the $1,000 per month in alimony payments on his federal tax return.

However, child support payments have traditionally been neither taxable income for the recipient nor tax-deductible for the payer.

Therefore, Duke would also not include the $2,000 per month in child support payments as income on his federal tax return.