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30 September, 00:40

Steve and Laura were divorced in 2012. Laura pays Steve alimony of $1,200 a month. The payment amount was agreed upon in the decree of divorce. To save money, Steve and Laura still live together. Are the alimony payments that Steve receives in 2019 included in his income? a. Yes, alimony is always taxable. b. Yes, the payments meet all alimony payment requirements. c. No, since Steve and Laura still live together, the payments are not considered alimony. d. No, only some of it is tax-exempt because Laura pays Steve too much alimony. e. Yes, alimony payments are not tax-exempt.

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  1. 30 September, 01:09
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    The correct answer is C

    Explanation:

    Alimony is the amount or an allowance or a legal obligation which is paid by the spouse to wife in order to support the financial support before or after the material divorce or separation.

    Under this situation, Laura (L) pays the alimony to Steve (S), which is agreed upon the decree of the divorce. But in order to save the money, they started to live together, so the alimony payment will not be included in his income as they started to live together and the payment will not be considered as the alimony.
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