Alimony Received Is Taxable to the Recipient While Child Support

question 37

True/False

Alimony received is taxable to the recipient while child support payments are not.

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Definitions:

Prepaid Workers' Compensation Insurance

An asset account that represents insurance payments made in advance for workers' compensation, which provides coverage for employee injuries on the job.

Workers' Compensation

Insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Gross Payroll

Gross payroll represents the total amount of money a business owes to its employees before any deductions, such as taxes and other withholdings, are made.

Injury

Physical harm or damage to a person's body, often resulting from accidents or violence.