Angelina is single and has modified AGI of $275,000.She adopted a boy from San Antonio,Texas,and incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit she can take?

Question

Quizplus · Accepted Answer

The adoption credit begins to phase out for taxpayers with modified adjusted gross income (MAGI) above certain thresholds, and it is completely phased out for taxpayers with MAGI above a higher threshold. For the tax year in question, Angelina's MAGI of $275,000 exceeds the phase-out limit for the adoption credit, making her ineligible for the credit.

Angelina Is Single and Has Modified AGI of $275,000