Vincent and Maria,whose modified AGI is $164,000,adopted a little girl from Mexico which was finalized in 2014.They incurred a total of $16,000 in qualified adoption expenses.What is the amount of adoption credit they can claim in 2014?

Question

Quizplus · Accepted Answer

The adoption credit for 2014 is up to $13,190 per child for qualified adoption expenses. Since Vincent and Maria adopted only one child and incurred $16,000 in expenses, they can claim the full credit amount of $13,190. This credit will reduce their tax liability or increase their refund, depending on their tax situation. Option A is incorrect as they are eligible for the credit. Options C and D are incorrect as the maximum credit for one child with qualified adoption expenses is $13,190 in 2014.

Vincent and Maria,whose Modified AGI Is $164,000,adopted a Little Girl