Steven Smith paid his ex-wife alimony of $22,000 in 2021. His marriage settlement agreement was signed on February 1, 2019. How are his alimony payments reported on his federal return?

Alimony payments are never deductible and are no longer included on the federal return.

Steven cannot deduct from income the amount of alimony he paid.

Steven may deduct from income the amount of alimony he paid on his federal return.

Steven must include the amount of alimony he paid as income on his federal return.