Asked by ejay

Isaac and Jeanne adopted a minor child that was in the custody of a California licensed adoption agency. The adoption was finalized in 2024. They paid $8,000 to the adoption agency, $4,000 in travel expenses, and $500 for medical costs not covered by insurance for the child. Their total tax liability is $3,600. What is the amount of their adoption credit on their 2024 California return?
$2,500
$3,600
$4,500
$12,500

All Answers 1

Answered by GPT-5 mini AI
Answer: $3,600

Explanation: Qualified adoption expenses = $8,000 + $4,000 + $500 = $12,500. The California adoption credit is nonrefundable and limited to the taxpayer’s tax liability, so the credit is limited to their $3,600 tax liability.