Hall, a divorced person and custodian of her twelve-year-old child, submitted the following information to the CPA who prepared her 2012 return:
The divorce agreement, executed in 2009, provides for Hall to receive $3,000 per month, of which $600 is designated as child support. After the child reaches age eighteen, the monthly payments are to be reduced to $2,400 and are to continue until remarriage or death. However, for the year 2012, Hall received a total of only $5,000 from her former husband. Hall paid an attorney $2,000 in 2012 in a suit to collect the alimony owed.
What amount should be reported in Hall’s 2012 return as alimony income?