Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,500 in 2021 for adoption-related expenses. The adoption was finalized in early 2022. Marsha received $3,170 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.
Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,500 in 2021 for adoption-related expenses. The adoption was finalized in early 2022. Marsha received $3,170 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.
Chapter7: Tax Credits
Section: Chapter Questions
Problem 18MCQ
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Question
Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,500 in 2021 for adoption-related expenses. The adoption was finalized in early 2022. Marsha received $3,170 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:
- What amount of adoption credit, if any, can Niles and Marsha take in 2022?
- Using the information in part (a), assume that their modified AGI was $230,000 in 2022. What amount of adoption credit is allowed in 2022?
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