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Mason and Janet were divorced in 2015. Their daughter Kelly lives with Mason, and Janet pays $650 per month of child support. Which of the following statements are true?

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lykabelle

The choices are:

a. Mason must claim the child support as income.

b. Janet can deduct the child support as an adjustment to income.

c. The child support is income received by the child and provided for her own support.

d. Child support payments received are not taxable income, and child support paid is not a deductible expense.

Answer:

The answer is letter d.

Explanation:

Under the Internal Revenue Code (IRC), "child support" is not considered as an income of the parent nor is it considered an income of the child. It is not part of a person's gross income. It is also non-deductible, which means that Janet cannot deduct the child support as an adjustment to income.

Child support payments are non-taxable as well. This means that tax will not be deducted from it, since it is a personal expense. It is not classified under any tax-deductible situations.

Only an "alimony" (this is the provision or the obligation that you will be supporting your spouse before or after divorce) is tax-deductible.

Remember that child support cannot be classified as an alimony.

Thus, this is the reason why letter d is the answer.

chilljain33

The correct statement is that the child support monies is not a part of taxable income and it is also not a deductible expense as per the taxation policies. So the correct option is D.

Kelly will not be able to show this money as a part of her income and hence she will not be taxable on such monies. Mason cannot claim any deductions for such child support monies.

  • Child support money is the compensation money paid by the earning spouse after the divorce of the partners has happened and the custody of their child is in the hands of non-earning member.

  • After the divorce, a court orders if there will be any liabilities related to the supporting the expenses of such child in the hands of any such spouses, if any.

  • As for the purposes of taxation liabilities, any of the spouses will not be able to be liable to claim any income or deductions over such monies. This is as per the taxation provisions of the laws.

  • The taxation provisions provide that there can be no liabilities by any of the person in case of any monies as a part of child support money as the money is decided as exclusive expenses to be incurred on the child.

Hence, the correct option is D that neither Janet will be liable to calculate such monies received as her taxable income and nor will Mason be able to claim deductions over such expenses.

To know more about taxable income, click the link below.

https://brainly.com/question/17961582

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