Jesus and Mindy have modified AGI of $210,000,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 adoption credit for 2021 is a maximum of $14,440 per child for taxpayers with a modified AGI of less than $216,660, and it gradually phases out for taxpayers with modified AGI between $216,660 and $256,660. Since Jesus and Mindy's modified AGI is $210,000, they are under the phase-out range and can claim the full credit of $18,000 for their adopted daughter. Therefore, the adoption credit they can claim in the current year is $18,000.

Jesus and Mindy Have Modified AGI of $210,000,adopted a Girl