How much of each total monthly payment can Roger deduct in 2010?
Roger is required under a 2008 divorce decree to pay $600 of alimony and $300 of child support per month for 12 years. In addition, Roger makes a voluntary payment of $100 per month.
The 2008 divorce decree requires Roger to make a payment of $600 as alimony, $300 per month for 12 years as child support and he also voluntarily makes a payment of $100 per month.
According to the guidelines set by the IRS, only alimony is deductible from the income of a person who is making the payment. Alimony does not include payments for child support and those that are made voluntarily.
For this problem we only need to consider the $600 that has been set as alimony. When Roger makes this payment to his ex-wife, he can claim a deduction of $600 from his income.
The right answer is option C.