Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,750 in 2021 for adoption-related expenses. The adoption was finalized in early 2022. Marsha received $3,270 of employer-provided adoption benefits. For part (a), assume that any adoption credit is not limited by modified AGI or by the amount of tax liability. Required: a. What amount of adoption credit, if any, can Niles and Marsha take in 2022? b. Using the information in part (a), assume that their modified AGI was $235,000 in 2022. What amount of adoption credit is allowed in 2022? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Amount of adoption credit b. Amount of adoption credit Amounts $ 12,480
Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,750 in 2021 for adoption-related expenses. The adoption was finalized in early 2022. Marsha received $3,270 of employer-provided adoption benefits. For part (a), assume that any adoption credit is not limited by modified AGI or by the amount of tax liability. Required: a. What amount of adoption credit, if any, can Niles and Marsha take in 2022? b. Using the information in part (a), assume that their modified AGI was $235,000 in 2022. What amount of adoption credit is allowed in 2022? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Amount of adoption credit b. Amount of adoption credit Amounts $ 12,480
Chapter7: Tax Credits
Section: Chapter Questions
Problem 18MCQ
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Transcribed Image Text:Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,750 in 2021 for adoption-related expenses. The
adoption was finalized in early 2022. Marsha received $3,270 of employer-provided adoption benefits. For part (a), assume
that any adoption credit is not limited by modified AGI or by the amount of tax liability.
Required:
a. What amount of adoption credit, if any, can Niles and Marsha take in 2022?
b. Using the information in part (a), assume that their modified AGI was $235,000 in 2022. What amount of adoption credit is
allowed in 2022?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
a. Amount of adoption credit
b. Amount of adoption credit
Amounts
$
12,480
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