Clarence and Victoria were divorced in 2014. Clarence was ordered to pay Victoria $12,000 a year in alimony. How is the alimony reported on each of their 2023 tax returns?

Clarence claims $12,000 as an adjustment to income, and Victoria reports $12,000 as income.

Clarence claims $12,000 as an adjustment to income, and Victoria does not report the alimony she received.

Clarence reports $12,000 as income, and Victoria reports $12,000 as an adjustment to income.

Clarence does not report the alimony on his return, and Victoria reports $12,000 as income.