Which of the following is NOT included in community income?

Study for the Liberty Tax School Test with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand. Prepare effortlessly and excel in your exam!

The correct response highlights that alimony received after divorce is not considered community income. Community income typically refers to income earned or accrued by either spouse during the marriage, which is then jointly owned by both parties. This includes salaries, wages from joint employment, and rental income from property owned together while married.

In contrast, alimony is a financial support payment made from one ex-spouse to another after a divorce, intended to assist the receiving party in maintaining a similar standard of living post-separation. Since alimony is awarded as a result of the dissolution of marriage rather than earned during the marriage itself, it does not qualify as community income. Community property laws govern the assets and income earned during the marriage; thus, anything received after the legal termination of the marital union, like alimony, falls outside this scope.

Understanding this distinction is crucial for accurately interpreting financial responsibilities and income classifications within the context of divorce and community property laws.

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