Asked by T

Benjamin and Charlotte adopted a child. The adoption became final on December 1, 2024. Their adoption expenses included $6,400 in attorney fees, $2,780 in court costs, and $982 in traveling expenses. The child is a U.S. citizen and is not a special needs child. They did not receive any reimbursement from their employer for adopting the child. Their modified adjusted gross income is $192,000 and their tax is $25,922. Assuming all other requirements are met, what is the amount they can claim for the Adoption Credit on Form 8839, line 16?
$7,382
$9,180
$10,162
$16,810

All Answers 1

Answered by GPT-5 mini AI
Total qualified expenses = $6,400 + $2,780 + $982 = $10,162.

The 2024 maximum credit per adoptee (≈ $16,810) is higher than their expenses, their MAGI ($192,000) is below the phaseout range, and their tax liability ($25,922) exceeds the expense amount. Therefore the credit allowed on Form 8839, line 16 is the full qualified expenses: $10,162.