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DiKsa [7]
2 years ago
13

Richard and Alice are divorced and under the terms of their written divorce agreement signed on December 30, 2011, Richard was r

equired to pay Alice $1,500 per month of which $600 was designated as child support. He made 12 such payments in 2018. Additionally, Richard voluntarily paid Alice $1,200 per month for 12 months of 2018, no portion of which was designated as child support. Assuming that Alice has no other income, her tax return for 2018 should show gross income of:_________.
Business
1 answer:
murzikaleks [220]2 years ago
4 0

Answer:

$10,800

Explanation:

Alice's gross income must include the money she received from Richard as part of their divorce settlement, excluding the amount set for child support:

Alice's gross income = 12 x ($1,500 - $600) = 12 x $900 = $10,800

The extra money that Richard gave Alice that was not part of the divorce settlement is not included in her gross income, since it is included in Richard's gross income.

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