Carla and Bob finalized an adoption in 2018.Their adoption fees totaled $9,500.They have AGI of $213,140 for 2018.What is their adoption credit?

Question

Quizplus · Accepted Answer

The adoption credit for 2018 is subject to a phase-out for AGI above $207,140. Since Carla and Bob's AGI is $213,140, they are in the phase-out range, reducing their maximum credit of $13,810. The reduced credit is calculated as $8,075.

Carla and Bob Finalized an Adoption in 2018