18. Adoption Credit. (Obj. 2) In 2019, a married couple paid $6,000 in qualified adoption expenses to adopt a child that is a U.S. citizen. In 2020, they paid an additional $4.200 in qualified adoption expenses. The adoption was finalized in 2020. a. Compute the couples' adoption credit if their modified AGI in both years is $115,000. In what year(s) is the credit taken? b. How would your answer to Part a. change if the couples' modified AGI was $224,800 in both years? c. How would your answer to Part a. change if the couple adopted a child with special needs? d. How would your answer to Part a. change if the adoption fell through?

18. Adoption Credit. (Obj. 2) In 2019, a married couple paid $6,000 in qualified adoption expenses to adopt a child that is a U.S. citizen. In 2020, they paid an additional $4.200 in qualified adoption expenses. The adoption was finalized in 2020. a. Compute the couples' adoption credit if their modified AGI in both years is $115,000. In what year(s) is the credit taken? b. How would your answer to Part a. change if the couples' modified AGI was $224,800 in both years? c. How would your answer to Part a. change if the couple adopted a child with special needs? d. How would your answer to Part a. change if the adoption fell through?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter7: Tax Credits

Section: Chapter Questions

Problem 18MCQ

See similar textbooks

Similar questions

Susan and Derick finalized an adoption in 2020. Their adoption fees totaled $10,000. They have AGI of $238,520 for 2020. What is their adoption credit? a. $4,000 b. $10,000 c. $7,263 d. $14,300
Subject - account Please help me. Thankyou.
dont give answer in image format
M01
I need the answer as soon as possible
Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to Korea and is finalized in 2020. They pay $7,000 in 2019 and $7,500 in 2020 for qualified adoption expenses. In 2020, Carl and Jenny have AGI of $150,000. If an amount is zero, enter "0". If required, carry any division out to four decimal places and round final answers to the nearest dollar. a. What is the adoption credit Carl and Jenny can claim in 2020?$ b. How much credit could they claim if the adoption falls through and is never finalized?$ c. How much credit could they claim if their AGI was $219,520? $
Please do not give solution in image format ?
Problem 9-57 (LO 9-7) Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,300 in 2020 for adoption-related expenses. The adoption was finalized in early 2021. Marsha received $3,250 of employer-provided adoption benefits. For part (a), assume that any adoption credit is not limited by modified AGI or by the amount of tax liability. Required: a. What amount of adoption credit, if any, can Niles and Marsha take in 2021? b. Using the information in part (a), assume hat their modified AGI was $234,000 in 2021. What amount of adoption credit is allowed in 2021? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Amount of adoption credit b. Amount of adoption credit Amounts
Mrs Tan, a Singaporean, is married with two children, aged 11 and 9 as at 31 December 2020. Both her children are Singaporeans. Mrs Tan's earned income for 2020 is $300,000. Calculate the Working Mother Child Relief that Mrs Tan can claim for the Year of Assessment 2021. Assume Mrs Tan's husband will claim the qualifying child relief. Question 1 options: 1) $91,000 2) $105,000 3) $100,000 4) $113,000
Q1) Jean, a 40-year-old Singapore citizen, was provided with the following employment income and benefits for the year 2020: (i) Monthly salary of $4,000. (ii) 2020 contractual bonus of $8,000. Jean is single and entitled to earned income relief of $1,000. Jean contributed to the Central Provident Fund based on the statutory limits. Calculate Jean's minimum chargeable income for the Year of Assessment 2021. Q2) Tom was awarded an option purchase the company's shares at $2/share. On 25 March 2020, he exercised the option to purchase 5000 shares when the share price was $2.50/share. He sold the shares at $4/share on 15 November 2020. The taxable benefit for the year 2020 is? Q3) Beta (S) Pte Ltd, in the business of making clothes, sold a tractor for $40,000 on 15 August 2020. The tractor was bought for $39,000 during its accounting year ended 31 December 2019. Calculate the balancing adjustment for the Year of Assessment 2021 assuming no capital allowance is claimed in the year…
Answer with explanation. 1. On March 6, 2022, a Filipino citizen donated house and lot with fair market value of P500,000 to his illegitimate child on account of marriage on January 1, 2022. return was filed and tax paid on July 5, 2022. (Assume a 10% legal interest rate for loans). The donor's tax due, including increments, as of July 5, 2022 is: a. P15,000 b. P15,750 c. P19,500 d. P23,250
Whenj a taxpajayer claims the spousal credit for an infirm spouse ($13,229 or less + $2,273 for 2020), an additional amount of the Canada caregiver amount may be available. Under what circumstances is this additional amount available and, when it is available, how is it calculated?