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 2020 tax return?

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

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

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

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