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vampirchik [111]
3 years ago
12

Smith, an individual, is required to pay goode yearly alimony of $6,000 and yearly child support of $18,000. smith paid goode $2

0,000 in 2017. smith’s 2017 w–2 income was $50,000. considering only the foregoing facts, what should smith’s adjusted gross income be for 2017
Business
1 answer:
marta [7]3 years ago
4 0
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. 
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