Question

Interview Notes • Tamara is 52 years old and her divorce became final on September 20, 2014 and has not been modified. The divorce decree stipulates she is required to pay alimony of $500 a month to her ex-husband. She paid him a total of $6,000 in 2019. • Tamara pays all the cost of keeping up her home in the United States. She earned $40,500 in wages in 2019, her only income. • Tamara's daughter. Kimberly, lived with Tamara all vear. Kimberly is 18 vears old, single and earned $8.000 in wages • Kimberly's son. Christian. was born on December 2, 2019. Christian lived in Tamara's home all year. • Tamara provides more than half of the support for both Kimberly and Christian. • Tamara, Kimberly, and Christian are all U.S. citizens with valid Social Security numbers. 1. Tamara and her ex-husband's divorce was final before December 31, 2018. How does this affect their 2019 tax returns? A. Tamara is not eligible to deduct alimony paid as an adjustment to income. Her ex-husband is not required to report alimony received as income. OB. Tamara is not eligible to deduct alimony paid as an adjustment to income. Her ex-husband is required to report alimony received as income. C. Tamara is allowed to deduct alimony paid as an adjustment to income. Her ex-husband is not required to report alimony received as income OD. Tamara is allowed to deduct the alimony paid as an adjustment to income. Her ex-husband is required to include the alimony received as income.

Answer 1

0 Option D 12 the correct answer - - The spouse who is Paying alimony can Claim deduotione provided the divorce agreement was finalised Prior 2019. The IRS would ency consider the payment deductible if it is paid in cash and are required by divosce agreement Meanwhile the ex spowe must incude the Halimony in his income and should pay income tax on it Q2. Option C. Head of household The martiae Status as of 31st December el leach year controls the filling status of Retuon for the entire year. In the possent case the final decree of divorce is obtained before the I year end thus can file dervon as a head of household and get the benefit of bigger standard deduction and gentler tax brackete. 00 63 option D 'In the present case tamana can claim both kimberly and Chistoin as they fullfill you owing conditione They are both relative of Tamara They are under 18 years of age end of the tax They did not pay over half of his or her own & un year. support duoing the year. They love with Tamaa - for more than half cf the year. Shot on OnePlus Powered by Dual Camera