Question

An individual received $50,000 during the current year pursuant to a divorce decree. A check for $25,000 was identified as annual alimony, checks totaling $10,000 as annual child support, and a check for $15,000 as a property settlement. What amount should be included in the individual's gross income?

Group of answer choices

$50,000

$40,000

$25,000

$0

Answer 1

$25,000 is the answer

Payments for the support of a spouse are income to the spouse receiving the payments and are deductible to arrive at adjusted gross income by the contributing spouse. Child support is not taxable. Property settlements are not taxable.

Only the $25,000 in alimony is included in the gross income of the receiving spouse.