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A couple was divorced in​ 2016, resulting in the payment of alimony. Alimony paid in 2020...

A couple was divorced in​ 2016, resulting in the payment of alimony. Alimony paid in 2020 is

A.deductible by both the payor and the payee.

B.an item which does not affect the​ payor's or the​ payee's tax reporting.

C.included in income by the payor and deducted by the payee.

D.deductible by the payor and included in income by the payee.

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Answer #1

Ans is C

Included in the income of ylthe recipient and deducted by the payee.

If you finalized your divorce before January 1, 2019, the spouse paying support may report the payments as a tax deduction, and the recipient must report and pay taxes on the alimony as income (unless your support agreement or order says otherwise). For couples whose divorce was pending on or after January 1, 2019, the Internal Revenue Service (IRS) no longer treats spousal support payments as income to the spouse who receives it, nor does it allow the paying spouse to take a tax deduction for the amount of alimony paid each year.

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