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?

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Quizplus · Accepted Answer

The adoption credit is subject to a phase-out for modified AGI between $223,410 and $263,410. Rolando and Silvia's AGI of $230,000 falls within this range, so the credit is reduced. The maximum adoption credit for 2023 is $15,950. The phase-out reduces the credit by a percentage of the amount over $223,410. The calculation results in a reduced credit of $4,011.

Rolando and Silvia Have Modified AGI of $230,000