Adoption Credit
Response to the following problem:
In 2013, a married couple paid $6,000 in qualified adoption expenses to adopt a child that is a U.S. citizen. In 2014, they paid aadoption expenses. The adoption was finalized in 2014.
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 $215,780 in both years?
c. How would your answer to Part a. change if the couple adopted a child with special needs?