Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $18,500 in 2020 for adoption-related expenses. The adoption was finalized in early 2021. Marsha received $3,800 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:
What amount of adoption credit, if any, can Niles and Marsha take in 2021?
Using the information in part (a), assume that their modified AGI was $239,000 in 2021. What amount of adoption credit is allowed in 2021?