Generally speaking, the taxpayer can deduct his alimony payment but not his child support payment. He may, however, be entitled to claim the child as a dependent, although this is beyond the scope of the question.
We can deduct the alimony payment but not the child support payment. Smith paid Goode $20,000 in 2017, although he owes 24,000. The adjusted gross income depends only on how much Alimony he paid.
If he paid the full $6,000 alimony and only 14,000 of child support, he can deduct the $6,000 for an adjusted gross income of 50,000- 6,000= $46,000.
If, for example, he paid the full $18,000 in child support and only 2,000 in alimony, he can only deduct the $2,000 for an adjusted gross income of 50,000 - 2,000 =48,000.
Answer:
Explanation:
Comparative income statements for Williamson is presented below:
Particulars 2017 2016 2015
Income before income tax $180,000 $145,000 $170,000
Less:Income tax $54,000 $43,500 $51,000
Net income $126,000 $101,500 $119,000
The income tax is computed below:
For 2017
= $180,000 × 30%
= $54,000
For 2016
= $145,000 × 30%
= $43,500
For 2015
= $170,000 × 30%
= $51,000
Explanation:
think the answer is E all of the Above