Chad and Jaqueline are married and have AGI of $150,000.In 2013 they adopted a child,while taking advantage of their employer's written adoption assistance program.The adoption cost $9,500,all of which was paid by the employer in accordance with the adoption plan.How much of the employer paid adoption costs may be excluded from their income?

Question

Quizplus · Accepted Answer

According to the IRS, the employer-paid adoption expenses may be excluded from the employee's income, up to a maximum of $14,300 for 2020. Therefore, in this case, the entire adoption cost of $9,500 may be excluded from Chad and Jaqueline's income.

Chad and Jaqueline Are Married and Have AGI of $150,000