Question #5On May 1, 2019, Leon and Shannon Weiss sign a separation agreement that calls for Shannon to pay Leon $1,200per month in child support (Leon will have custody of their three children) and $2,100 per month in spousal supportbeginning on June 1

Finance Dec 19, 2020

Question #5On May 1, 2019, Leon and Shannon Weiss sign a separation agreement that calls for Shannon to pay Leon $1,200per month in child support (Leon will have custody of their three children) and $2,100 per month in spousal supportbeginning on June 1. To the end of 2019, Shannon’s payments total only $9,500. How will these payments be dealtwith in Shannon and Leon’s 2019 tax returns?

Expert Solution

The total required child support is $8,400 [(7 Months)($1,200)] and Shannon’s payments will be allocated to thisrequirement first. This means that $8,400 of her payments will not be deductible to her or taxable to Leon. Theremaining $1,100 ($9,500 - $8,400) will be considered a payment towards spousal support and will be deductible toShannon and taxable to Leon

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