Matt and Melanie have been married for 12 years and have no children. They are divorcing on January 1, 2021. Matt comes to you for tax advice.
As part of their divorce, Melanie will pay Matt $2,000/month alimony until Matt finishes graduate school and can secure full-time employment (approx. 25 months).
What amount, if any, does Matt included in gross income?
Assume the divorce agreement is finalized January 1, 2021, and Matt receives 12 payments ($24,000 total) in 2021.
Matt and Melanie finalized their divorce agreement on January 1, 2018.
What amount, if any, of the $24,000 in total alimony payments that Melanie makes in 2021 ($2,000/month * 12 months) will Melanie be able to deduct on her 2021 federal income tax return?