Question

Under the alimony rules:________

a. To determine whether a cash payment is alimony, one must consult the state laws that define alimony
b. A person who receives a property division has experienced an increase in wealth and thus should be subject to tax.
c. Alimony paid per a 2015 divorce agreement is included in the gross income of the recipient of the payments.
d. A person who earns $90,000 and pays $20,000 in alimony per a divorce agreement entered into in 2019, is allowed to deduct the $20,000.
e. None of these

Answer 1

c. Alimony paid per a 2015 divorce agreement is included in the gross income of the recipient of the payments.

Step-by-step explanation:

Alimony can be defined as a financial support or allowance that is mandated by the court (legal obligation) to be made by a divorced or legally separated person to his or her former spouse so as to maintain and support life.

Simply stated, alimony is a legal spousal support or allowance made by a divorced or legally separated person to his or her former spouse for maintenance.

Under the alimony rules, alimony paid per a 2015 divorce agreement is included in the gross income of the recipient of the payments according to the internal revenue service (IRS) of the United States of America.