Question

Payments pursuant to a separation or divorce that have no tax consequences

a) Taxable
b) Non-taxable
c) Excludable
d) Deductible

Answer 1

Payments pursuant to a separation or divorce that have no tax consequences are non-taxable.

Step-by-step explanation:

Payments pursuant to a separation or divorce that have no tax consequences are non-taxable. This means that individuals who receive these payments are not required to report them as income on their tax returns and do not need to pay taxes on them. Examples of non-taxable payments in a separation or divorce include child support and certain types of spousal support.