Question

Alimony. Bruno has been married and divorced twice. He has to pay alimony to each of his ex-wives. He got divorced from his first wife in March 2014 and from his second wife in June 2019. During 2020, he pays total alimony to his first wife of $59,000 and to his second wife of $47,000. How much is Bruno's "for AGI" deduction for alimony in 2020? (Assume both payments qualify as "alimony" for tax purposes.)

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Answer 1

Per IRS and the Tax Cuts and Jobs act of 2017, alimony agreements executed and paid after December 31, 2017 would not be deductible in order to arrive at the Adjusted Gross Income.

Per the question, we understand that Bruno has been married twice and has paid the alimony to both of his ex-wives. He pays Alimony to his first wife from March 2014 while to his second wife from June 2019. Since the alimoney payments for agreements entered post December 31, 2017 do not qualify for deduction, Bruno will deduct the alimony payments made to his first wife alone in order to arrive at the AGI which is $59,000.

Further, Alimony payments are deducted to arrive at the AGI and as such, Bruno would be eligible for a fully deductible amount in order to arrive at the AGI.

Hence, the correct answer for the question is $59,000

Bruno's "For AGI" Deduction - $59,000