If a Divorce Agreement Executed in 2014 Specifies That a Portion

question 106

True/False

If a divorce agreement executed in 2014 specifies that a portion of the amount of an alimony payment is contingent upon the status of a child, that portion is considered to be a child support payment.

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Definitions:

Tax-Deferred Plans

Investment accounts that allow taxes on the principal and/or earnings to be paid at a future date instead of the year the investment earns income.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit.

IRA Contribution

Money placed into an individual retirement account (IRA) that may qualify for tax deductions or other tax advantages.

AGI

Adjusted Gross Income; a determinant of tax liability calculated by adjusting gross income for certain allowable deductions.