In 2015, Brian and Clara reached a settlement with regards to the terms of their divorce and it was the following: Brian would pay Clara (former spouse) 1000 per month in child support payment and 1.8 times the child support payment(amount) per month as spousal support payment. Upto 2019 Brian has been fulfilling this settlement requirements. However, in 2020, his total payments were only 15000. Determine how these payments will be treated in the tax return of Brian and Clara in 2020.
1) A Same as previous years.
2) B Brian's deductions (from spousal support) will be limited to 3000 and Clara only needs to add 3000 in her 2020 income. Brian's deductions (from child support) will be limited to 12000 and Clara only needs to add 3000 in her 2020 income.
3) C Since Brian did not pay the full amount (as per the settlement), he is not eligible to any deductions. Clara only needs to add 15000 in her 2020 income.