Chad and Jaqueline are married and have AGI of $150,000. In 2018 they adopted a child, while taking advantage of their employer's written adoption assistance program. The adoption cost $9,500, all of which was paid by the employer in accordance with the adoption plan. How much of the employer- paid adoption costs may be excluded from their income?

Question

Quizplus · Accepted Answer

In 2018, the maximum exclusion for employer-paid adoption assistance was $13,810. Since the adoption cost of $9,500 is below this limit, the entire amount can be excluded from their income.

Chad and Jaqueline Are Married and Have AGI of $150,000