Self-Study Problem 7.7 James and Michael Bass finalized the adoption of their daughter Allison in October 2020, one month after her birth. Alison is a US otizen and is not a child with special needs. Her Social Security number is 466-47-3311. In 2020, James and Michael paid $17,000 in qualified adoption expenses, In addition, Michael's employer paid $4,000 directly to an adoption agency as an employer provided adoption benefit. The Bass's AG2 for 2020 is $222,520 (assume adjusted gross income and modified adjusted gross income are the same for purposes of this problem). The Bass' tax liability is $27,343 (which is the same amount from line 5 of the Credi Worksheet) and they are not using tax credits except the adoption credit. They did not file Form 8839 for a prior year. Complete Form 8839 to calculate the Bass's adoption credit and the amount of any employee adoption exclusion Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". For line 9, round your answer to three decimal places, Round all other amounts to the nearest dollar. Form 8839 Department of the Treasury Internal Revenue Service (99) Name(s) shown on retum James and Michael Bass Part I Qualified Adoption Expenses Attach to Form 1040, 1040-S8 or 1040-NR. Go to www.irs.gov/Formsso for instructions and the latest information. OMB No. 1545-0074 2020 Attachment Sequence No. 38 Your social security number Information About Your Eligible Child or Children-You must complete this part. See instructions for details, including what to do if you need more space 1 Child 1 Alison Check My Work Fin (a) (c) Child's name (b) Child's year of birth Check if child was- (d) born before a child with (9) (e) Check (5) adoption 2003 and special Last disabled needs foreign child Child's identifying number became final is 2020 or earlier 2020 0 456-47-3311 Previous Next >