Which of the following types of income is considered taxable for alimony received under older divorce decrees?

Alimony payments received under older divorce decrees are considered taxable income for the recipient. This treatment stems from tax laws enacted prior to 2019, which stipulated that alimony payments were included in the gross income of the individual receiving them, allowing for the payor to deduct the payments on their tax return. This means that the person receiving the alimony must report it as income when filing their taxes, making it an important aspect of tax compliance for those in this situation.

On the other hand, child support payments are not considered taxable income for the recipient, as they are designed to support children rather than provide income to the former spouse. Inheritance funds are generally exempt from taxation and do not require reporting as income. Similarly, insurance payouts, unless they are compensation for lost income, are typically not subject to income tax. Therefore, alimony payments under older divorce agreements are indeed taxable, which solidifies the correctness of this answer.