Under the Alimony Rules

question 8

Multiple Choice

Under the alimony rules:

• A)To determine whether a cash payment is alimony, one must consult the state laws that define alimony.
• B)A person who receives a property division has experienced an increase in wealth and thus should be subject to tax.
• C)The income is included in the gross income of the recipient of the payments.
• D)A person who earns $90,000 and pays $20,000 in alimony is taxed on $90,000 because the $20,000 alimony is income assigned to the former spouse.
• E)None of these.

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Definitions:

Cognitive Dissonance

A state of mental discomfort arising from holding two or more conflicting beliefs, values, or attitudes.

Confrontation

A direct encounter between parties or individuals, where conflicts or disagreements are addressed head-on.

Decrease

A reduction in size, quantity, or intensity of something.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.