Question

Which of the following statements is true? (A) Henry must report the $12,000 alimony received as income and Charlotte can claim alimony paid as an adjustment to income.(B) Henry is not required to report the $12,000 alimony received as income and Charlotte cannot claim alimony paid as an adjustment to income.(C) Henry must report the $12,000 alimony received as income and Charlotte cannot claim alimony paid as an adjustment to income.(D) Henry is not required to report the $12,000 alimony received as income and Charlotte can claim alimony paid as an adjustment to income.

Answer 1

Answer:

The correct statement is B

Explanation:

Relevant information:

Henry (H) and Charlotte (C) separated in the year 2018 and their divorce was finalized in 2019, January

During the year, 2019 C paid H alimony of $12,000

Now, will analysis the information:

As per the U. S (United States) IRS (Internal Service Revenue), if the divorce is finalized in 2019 or after that, then the payment of alimony are no longer is deductible, nor the recipient have to record or report them as an income.

So, in the given case, H is not required to report the alimony payment received as an income and C cannot claim the alimony paid as an adjustment to the income.

Therefore, the correct answer is B.

Note: The relevant information is taken from the case which is stated or given above before the question.