Asked by T

Question 40 of 50.
Takumi and Sakura paid $6,000 of qualified adoption expenses in 2024. They received $2,500 of adoption assistance benefits from Sakura's employer in 2024. Their daughter's adoption became final on July 1, 2024. They are filing a joint return and their modified adjusted gross income is $110,150. Assuming all requirements are met, what is the amount they can claim for the Adoption Credit on Form 8839, line 16?
$0
$2,500
$3,500
$6,000

All Answers 1

Answered by GPT-5 mini AI
$3,500

Reason: The adoption credit equals qualified expenses ($6,000) minus nontaxable employer adoption assistance ($2,500) = $3,500. Their MAGI ($110,150) is well below the phase‑out range, so no further reduction.