7. Under the alimony rules:

a. To determine whether a cash payment is alimony, one must consult the state laws that define

alimony.

b. A person who receives a property division has experienced an increase in wealth and thus should be

subject to tax.

c. Alimony paid per a 2015 divorce agreement is included in the gross income of the recipient of the

payments.

d. A person who earns $90,000 and pays $20,000 in alimony per a divorce agreement entered into in

2020, is allowed to deduct the $20,000.

e. None of these.

8.The amount of Social Security benefits received by an individual that he or she must include in

gross income:

a. Is computed in the same manner as an annuity [exclusion = (cost/expected return) amount

received].

b. May not exceed the portion contributed by the employer.

c. May not exceed 50% of the Social Security benefits received.

d. May be zero or as much as 85% of the Social Security benefits received, depending upon the

taxpayers Social Security benefits and other income.

e. None of these