Rolando and Silvia have modified AGI of $230,000.They adopted a boy from Guatemala,whose adoption became final in the current year.They incurred a total of $15,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in the current year?

Question

Quizplus · Accepted Answer

The adoption credit is phased out for taxpayers with MAGIs over $214,160. Rolando and Silvia's MAGI is $230,000, so their adoption credit is reduced by $1,810 ($230,000 - $214,160 x $10). Their maximum adoption credit is $13,190 ($15,000 - $1,810).

Rolando and Silvia Have Modified AGI of $230,000