Under a court-ordered decree of separate maintenance executed in 2011, Rebecca is required to pay her ex-husband, Carl, $5,000 a month until their youngest son turns age 18. At that time, the required payments are reduced to $2,500 per month. How much of each payment is deductible by Rebecca as alimony?
A. $7,500
B. $5,000
C. $2,500
D. $0
is it A
Rebecca is paying her ex-husband? Then she is not receiving alimony, right? He is receiving alimony AND child support!
oh so its D
I'd say D, but then I just use Turbo-Tax and don't have an ex-spouse or child to worry about!
If it is court ordered, 5000 is deductible for her as "alimony".
To determine the amount of each payment that Rebecca can deduct as alimony, we need to consider the rules set by the Internal Revenue Service (IRS).
According to the IRS guidelines, for a payment to be considered deductible as alimony, it needs to meet certain criteria. One of the requirements is that the payment must be made under a divorce decree or separate maintenance decree.
In this case, the court-ordered decree of separate maintenance executed in 2011 qualifies the payment.
Next, we need to determine the portion of the payment that qualifies as alimony.
From the information provided, we know that Rebecca is required to pay $5,000 a month until their youngest son turns age 18. At that point, the required payments are reduced to $2,500 per month.
Based on this information, we can conclude that the $5,000 monthly payment is deductible as alimony. Once their youngest son turns 18, the reduced payment of $2,500 per month also qualifies as an alimony payment.
Therefore, the correct answer is:
B. $5,000