Question

Angelina is single and has modified agi of $275,000. she adopted a boy from san antonio, texas, and incurred a total of $16,000 in qualified adoption expenses. what is the amount of adoption credit she can take

Answer 1

Answer: $3200

Explanation: The child and dependent care credit provides taxpayers a credit break for parents who are responsible for the childcare cost. The maximum credit amount for the year 2020 is $14,300 for one child or dependent and

However, given that Angelina's AGI is $250,000, she could qualify for partial adoption adoption credit as the credit starts as her income lies between $214,520 to $254,520

For partial credit : 20% of incurred amount

0.2 × $16,000 = $3200