Lee and Whitney incurred qualified adoption expenses in 2013 of $2,000,and then incurred $7,000 more in 2014 when the adoption of their child became final.Their 2013 AGI was $120,000 and their 2014 AGI was $140,000.The allowable adoption credit is
A)$ 7,000 in 2014.
B)$ 9,000 in 2014.
C)$13,190 in 2014.
D)$2,000 in 2013 and $7,000 in 2014.

Question

Quizplus · Accepted Answer

The maximum allowable adoption credit in 2014 is $13,190. This credit is phased out for taxpayers with AGIs between $197,880 and $237,880. Since Lee and Whitney's AGI is below this range, they are not subject to the phase-out. They can therefore take the full $2,000 credit in 2013 and the full $13,190 credit in 2014, for a total of $15,190.

Lee and Whitney Incurred Qualified Adoption Expenses in 2013 of $2,000,and