51. Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2007, Richard was required to pay Alice $1,500 per month of which $700 was designated as child support. He made 12 such payments in 2014. Additionally, Richard voluntarily paid Alice $1,200 per month for 12 months of 2014, no portion of which was designated as child support. Assuming that Alice has no other income, her tax return for 2014 should show gross income of: 52. Steve and Laura were divorced in 2008. Laura pays Steve alimony of $1,200 a month. The payment amount was agreed upon in the decree of divorce. To save money, Steve and Laura still live together. Are the alimony payments that Steve receives in 2014 includable in his income? Can Laura take a deduction for alimony paid?
51. Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2007, Richard was required to pay Alice $1,500 per month of which $700 was designated as child support. He made 12 such payments in 2014. Additionally, Richard voluntarily paid Alice $1,200 per month for 12 months of 2014, no portion of which was designated as child support. Assuming that Alice has no other income, her tax return for 2014 should show gross income of: 52. Steve and Laura were divorced in 2008. Laura pays Steve alimony of $1,200 a month. The payment amount was agreed upon in the decree of divorce. To save money, Steve and Laura still live together. Are the alimony payments that Steve receives in 2014 includable in his income? Can Laura take a deduction for alimony paid?
Test-Bank-for-Income-Tax-Fundamentals-2015,-33rd-Edition-by-Gerald-E.-Whittenburg.docx