Câu 9: AFP: Applied Financial Planning

Tom has two children from a previous marriage. He has been paying $1,000 per month for spousal support and $1,500 per month for child support to his ex-wife. Recently, his ex-wife was awarded increased child support payments from Tom to cover unanticipated university expenses for one of the children. What should Tom's financial planner advise him about how this increased monthly payment may impact his finances?

1. A. Net cash flow will be reduced equal to the amount of the extra child support payments, less the tax deduction.
2. B. The increased amount Tom pays in child support will result in a larger tax credit at the end of the year.
3. C. Net cash flow will be reduced equal to the full amount of the extra child support payments. — đáp án hiện tại
4. D. The tuition tax credit for his child's post-secondary education will be applied towards Tom's taxes.