Waylon and Jonah adopted a child with special needs in a domestic adoption. They had $10,400 in adoption expenses in 2022, and the adoption was finalized on December 18, 2022. Their MAGI is $101,550. What is the maximum adoption credit they can claim in 2022?
$10,400
$14,890
$15,400
$15,950
Sampson and Jaqueline had $2,500 in domestic adoption expenses in 2020, $2,500 in adoption expenses in 2021, and $5,000 in adoption expenses in 2022. The adoption was finalized on April 25, 2022. Which statement is TRUE about their Adoption Credit if they wish to claim the expenses as early as possible? They can claim:
$10,000 in 2022.
$5,000 in 2021 and $5,000 in 2022.
$2,500 in 2021 and $7,500 in 2022.
$2,500 in 2022, $2,500 in 2023, and $5,000 in 2024.
Which of the following is a special tax treatment allowed to those who contribute to a 401(k) or 403(b) plan?
There are no limits on annual pre-tax contributions to 401(k) or 403(b) plans.
Qualified earnings are tax-exempt.
Pre-tax contributions reduce adjusted gross income.
Pre-tax contributions are deferred for social security and medicare taxes.