Question

On August 15, 2019, Annie and Johnny Matthews sign a separation agreement that calls for Annie to pay Johnny $1300 per month in child support (Johnny will have custody of their 3 children) and $2,000 per month in spousal support beginning September 1. During 2019, Annie ends up paying only $8800 total in the remaining four months in 2019. What amount of support is deductible in 2019 to Annie and taxable to Johnny?

Answer 1

The amount of support that is deductible for Annie and taxable for Johnny in 2019 is $3600. Please check the explanation below to help you remember the steps.

Step-by-step explanation:

First, let's calculate the total amount Annie was supposed to pay from September to December 2019. The total monthly support is $1300 (for child support) + $2000 (for spousal support) = $3300. Over four months, this totals to $3300 * 4 = $13200.

However, Annie only paid $8800 in 2019.

Since child support is not deductible for the payer (Annie) or taxable for the recipient (Johnny), we need to determine how much of the $8800 was for child support and how much was for spousal support.

The child support is $1300 per month for 4 months, which is $1300 * 4 = $5200.

So, the remaining amount of $8800 - $5200 = $3600 must be for spousal support.

Therefore, the amount of support that is deductible for Annie and taxable for Johnny in 2019 is $3600 dollars.