Asked by Chloe Myers on May 26, 2024

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Which of the following statements regarding adoption credits is not true?

A) Qualified expenses do not include employer reimbursements.
B) An eligible child may be up to the age of 18.
C) The credit may be claimed regardless of the taxpayer's modified AGI amounts.
D) Qualified expenses include adoption fees,attorney fees and court costs.

Adoption Credits

Tax credits offered to adoptive parents to offset qualified adoption expenses, making adoption financially feasible for many families.

Qualified Expenses

Expenses that meet the requirements set forth by tax laws or other governing bodies for eligibility for tax benefits or educational purposes.

Employer Reimbursements

Payments made by an employer to an employee to cover expenses incurred on behalf of the employer, which can be taxable or nontaxable to the employee depending on the type of expense and accounting method used.

  • Understand and determine the adoption credit applicable to both domestic and international adoption processes.
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ZK
Zaeem KadiwalaMay 27, 2024
Final Answer :
C
Explanation :
The statement that the adoption credit may be claimed regardless of the taxpayer's modified AGI amounts is not true. The credit begins to phase out for taxpayers with modified AGI over a certain threshold (which varies depending on the tax year).