Question

Keauze rourrotential: M&M ช.OCK Mark for follow up Question 5 of 75. the information provided for each choice, then determine which taxpayer is required to file Form 1040. Courtney, who has a dependent child. She received $7.200 in child support. Caden, a recent cellege graduate claiming the student toan interest deduction Noah, who did not have qualifying health coverage and is subject to the shared responsibility payment. Laura, who received $2,500 of alimony from her ex-spouse. Review Mark for follow up Save / Return Later Summary Next x

Answer 1

D. Alimony received by Laura needs to be reported on Form 1040.

Amounts paid to a spouse or a former spouse under a divorce or separation instrument (including a divorce decree, a separate maintenance decree, or a written separation agreement) may be alimony for federal tax purposes. Alimony is deductible by the payer spouse, and the recipient spouse must include it in income. Any amounts received that are considered alimony, must be included as income. It is necessary to report alimony received on Form 1040, or on Schedule NEC, Form 1040NR.  One must provide the SSN or ITIN to the spouse or former spouse making the payments, otherwise one may have to pay a $50 penalty.