Chapter 10 Individuals: Income, Deductions, and CreditsAlimony, Child Support, and Property SettlementsAlimony isoDeductible by payeroIncludible in gross income of recipientChild support paymentsoPayments made to satisfy legal obligation to support child of taxpayeroNondeductible by payer and not taxed to recipient (or child)Interspousal Property settlementsoTransfer of property to former spouseoNo deduction or recognized gain or loss for transferoroNo gross income and carryover of transferor’s basis for transfereePrizes and AwardsGeneral rule: FMV of item is included in incomeExceptionsoTaxpayer designated qualified organization to receive prize or awardoEmployee achievement awards of tangible personal property made in recognitionof length of service or safety achievement. Unemployment compensation is taxable in fullSocial Security BenefitsoA portion of Social Security income is taxable to the extent that a taxpayer’s provisional income exceeds certain base amounts
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Accounting, Taxation in the United States, social security benefits, provisional income