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7. Under the alimony rules: a. To determine whether a cash payment is alimony, one must consult the state laws that define alimony. b. A
7. 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. Alimony paid per a 2015 divorce agreement 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 per a divorce agreement entered into in
2020, is allowed to deduct the $20,000.
e. None of these.
8.The amount of Social Security benefits received by an individual that he or she must include in
gross income:
a. Is computed in the same manner as an annuity [exclusion = (cost/expected return) amount
received].
b. May not exceed the portion contributed by the employer.
c. May not exceed 50% of the Social Security benefits received.
d. May be zero or as much as 85% of the Social Security benefits received, depending upon the
taxpayers Social Security benefits and other income.
e. None of these
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