Homer and Marge have been unable to have a baby. They decided last year that ado

Question

Homer and Marge have been unable to have a baby. They decided last year that adoption would be the best choice for them. They believe that they can support a child that has special needs both financially and emotionally. Therefore, this year, they adopted Maggie, a four year old special needs child. They paid $9,000 in qualifying adoption expense for the current year. Their MAGI in 2017 is $170,000 and their tax due before the application of the qualified adoption credit is $13,570. What is Homer and Marge's available adoption credit for 2017?

A. $9,000.

B. $11,650.

C. $13,360.

D. $13,570.

Explanation / Answer

Option D is correct, that is Qualfied adoption credit is 13570 per child

MAGI has to be below the limit of 203540, since MAGI is 170000 as stated in the question, hence qualified adoption credit is 13570

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