Paid by spouse/former spouse under judicial order/written agreement of divorce receives: Alimony or allowance or maintenance (For themselves or child). The alimony received is spec... Paid by spouse/former spouse under judicial order/written agreement of divorce receives: Alimony or allowance or maintenance (For themselves or child). The alimony received is specially included into the taxpayer's gross income – Gross Income -paragraph(b). Since 21 March 1962: Is gross income, but is exempt. Exempt in hands of recipient.
Understand the Problem
The text seems to be discussing the tax implications of alimony received by a taxpayer, specifically regarding how it is treated as gross income based on specific criteria and historical context since March 21, 1962. It outlines that while alimony is included in gross income, it is exempt for the recipient.
Answer
Alimony is included in gross income but is exempt for the recipient.
The alimony received is included in the taxpayer's gross income, but it is exempt in the hands of the recipient.
Answer for screen readers
The alimony received is included in the taxpayer's gross income, but it is exempt in the hands of the recipient.
More Information
Alimony received after March 21, 1962, is considered gross income but it is exempt for the recipient, effectively meaning it doesn't incur tax liability for the recipient.
Tips
Make sure to differentiate between alimony and other types of support payments as they might have different tax implications.
Sources
- Tax Consequences of Divorce - eGrove - egrove.olemiss.edu
- 2018 A5: Divorce - resources.taxschool.illinois.edu
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