Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve asap. Problem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to
please solve asap.
Problem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption takes 2 years and two trips to Korea and is finalized in 2022 . They pay $8,000 in 2021 and $7,500 in 2022 for qualified adoption expenses. In 2022, 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 2022 ? $ Feedback Check My Work Taxpayers are allowed two tax breaks for adoption expenses. A tax credit is allowed for qualified adoption expenses paid by taxpayers, and an exclusion from W-2 income is allowed for qualified adoption expenses paid by taxpayers' employers. Form 8839 is used to calculate and report the adoption credit. There is a limitation on the total expense that can be taken as a credit with respect to an adoption of a child. The credit is the total amount for each adoption and is not an annual amount. The amount of the credit allowable for any tax year is reduced for taxpayers with AGI over $216,660 and is fully phased out when AGI reaches $263,410. b. How much credit could they claim if the adoption falls through and is never finalized? $ b. How much credit could they claim if the adoption falls through and is never finalized? $ Feedback Check My Work Correct c. How much credit could they claim if their AGI was $229,410 ? $ Problem 7-15 The Affordable Care Act (LO 7.4) Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2022, Susan's income is $43,120 and Stan's is $12,000 and both are self-employed. They also have $500 in interest income from tax-exempt bonds. The Collins enrolled in health insurance for all of 2022 through their state exchange but did not elect to have the credit paid in advance. The 2022 Form 1095-A that the Collins received from the exchange lists the following information: Compute the Collins' premium tax credit for 2022. Click here to access the 2022 FPL table . Click here to access the Round any division to two decimal places before converting to a percent. If required, round your final answer to the nearest dollar. $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started