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 maximum adoption credit for the year 2021 is $14,440 per child, and it is phased out for taxpayers with a modified AGI above $216,660. Since Jesus and Mindy's modified AGI is $210,000, they are eligible for the full credit. Thus, they can claim a credit for the full amount of their qualified adoption expenses, which is $18,000. Therefore, the amount of adoption credit they can claim in the current year is $18,000.

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