Samantha works for IBM and is entitled to receive a monthly salary of $5,000. Samantha enters into a child-support agreement with her ex-husband whereby Samantha agrees topay $2,000 per month for all of 2021. In fact, Samantha informs IBM of the arrangement and has the $2,000 deposited directly into her ex’s bank account. When Samantha files her tax return, the IRS claims Samantha is taxed on the $24,000 she paid in child support. Samantha claims her ex should be taxed. Who is right?
Samantha works for IBM and is entitled to receive a monthly salary of $5,000. Samantha enters into a child-support agreement with her ex-husband whereby Samantha agrees topay $2,000 per month for all of 2021. In fact, Samantha informs IBM of the arrangement and has the $2,000 deposited directly into her ex’s bank account. When Samantha files her tax return, the IRS claims Samantha is taxed on the $24,000 she paid in child support. Samantha claims her ex should be taxed. Who is right?
Chapter5: Deductions For And From Agi
Section: Chapter Questions
Problem 3P: Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for...
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Samantha works for IBM and is entitled to receive a monthly salary of $5,000. Samantha enters into a child-support agreement with her ex-husband whereby Samantha agrees topay $2,000 per month for all of 2021. In fact, Samantha informs IBM of the arrangement and has the $2,000 deposited directly into her ex’s bank account. When Samantha files her tax return, the IRS claims Samantha is taxed on the $24,000 she paid in child support. Samantha claims her ex should be taxed. Who is right?
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