Jesus and Mindy have modified AGI of $200,000,adopted a girl from Miami,Florida,and incurred a total of $18,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year? (Do not round interim calculations)

Question

Quizplus · Accepted Answer

The maximum adoption credit for 2021 is $14,440. However, this credit is phased out for taxpayers with modified AGI above $216,660 and is completely eliminated for taxpayers with modified AGI above $256,660. Since Jesus and Mindy have modified AGI of $200,000, they are not subject to the phaseout. Therefore, their maximum adoption credit is the lesser of their qualified adoption expenses ($18,000) or the maximum credit ($14,440). Thus, they can claim an adoption credit of $12,491.

Jesus and Mindy Have Modified AGI of $200,000,adopted a Girl