Question

Fred and Wilma were divorced in year 1 (before 2019). Fred is required to pay Wilma $12,000 of alimony each year until their child turns 18. At that time, the payment will be reduced to $10,000 per year. In year 3, in accordance with the divorce agreement, Fred paid $6,000 directly to Wilma and $6,000 directly to the law school Wilma is attending. What amount of the payments received in year 3 is income to Wilma

Answer 1

Answer:

$10,000

Explanation:

There are various points that need to be considered as follows:

1. The person who is making alimony and have distinct payments for the maintenance purpose is eligible for the deductions

2. The person who received alimony and  have distinct payments for the maintenance purpose this must be involved in their gross income

So as per the given situation only $10,000 would be considered as the income for the year 3