In 2013, a couple pays $10,000 towards the adoption of a U.S. born child. The co

Question

In 2013, a couple pays $10,000 towards the adoption of a U.S. born child. The couple pays another $10,000 in 2014 when the adoption is finalized. In both years, AGI is less than $150,000. Which of the following statements best describes the couple's adoption credit?

a. The couple is entitled to a $10,000 adoption credit in 2013 and a $3,190 adoption credit in 2014.

b. The couple is entitled to a $20,000 adoption credit in 2014.

c. The couple is entitled to a $13,190 adoption credit in 2014, and will carryover $6,810 to 2015.

d. The couple is entitled to a $10,000 adoption credit in 2013, a $3,190 adoption credit in 2014, and will carryover $6,810 to 2015.

e. None of the above

Explanation / Answer

d) As per rules the maximum credit foer 2014 is $13,190 saand also the AGI is less than 150,000

so The couple is entitled to a $10,000 adoption credit in 2013, a $3,190 adoption credit in 2014, and will carryover $6,810 to 2015

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