Question

Regardless of when a divorce agreement is executed, alimony is included in gross income of the recipient and is deductible for AGI by the payer.

A true
B False

Answer 1

Alimony is included in the gross income of the recipient and is deductible for AGI by the payer.

Step-by-step explanation:

The statement is true regarding alimony.

Alimony is a payment made by one spouse to another after a divorce. According to the tax laws in the United States, the recipient of alimony must include it in their gross income, while the payer can deduct it from their adjusted gross income (AGI).

This means that regardless of when a divorce agreement is executed, alimony is considered taxable income for the recipient and a deductible expense for the payer.