Question

Henry and Charlotte are both 28 years old.

Henry and Charlotte separated in 2018 and their divorce was finalized in January 2019. During 2019, Charlotte paid Henry alimony payments of $12,000.
Charlotte earned $85,000 in wages during 2019. Henry earned $13,000 in wages.
Henry has two children from a previous relationship. Ethan is 9 and James is 6 years old and they lived with Henry for all of 2019. Ethan and James did not provide over half of their own support.
Henry paid all the rent, utilities, and household expenses.
Henry, Charlotte, Ethan, and James are all U.S. citizens with valid Social Security numbers.
***Which of the following statements is true?

A. Henry must report the $12,000 alimony received as income and Charlotte can claim alimony paid as an adjustment to income.
B. Henry is not required to report the $12,000 alimony received as income and Charlotte cannot claim alimony paid as an adjustment to income.
C. Henry must report the $12,000 alimony received as income and Charlotte cannot claim alimony paid as an adjustment to income.
D. Henry is not required to report the $12,000 alimony received as income and Charlotte can claim alimony paid as an adjustment to income.

Answer 1

The statement "Henry is not required to report the $12,000 alimony received as income and Charlotte cannot claim alimony paid as an adjustment to income " is True

Step-by-step explanation:

Significant information provided - The divorce between Charlotte and Henry was finalized in January 2019 and split in 2018.

Charlotte paid $12000 for Henry's foodstuffs in 2019.

The review and conclusion of the study - In the case of the divorce finalized in 2019 or later, the food allowance is now no longer deducible and is not declared as wages by the beneficiary according to the U.S. Internal Revenue Service.

In that case, the $12000 under income received will not be declared by Henry and Charlotte is not entitled to claim alimony as a result of salary adjustment.

So, Option B is correct statement.