Foreign Earned Income Exclusion - The maximum amount of foreign earned income that can be excluded for:
2016
is $ 101,300
If both spouses have foreign earned income each spouse qualifies for the
exclusion
Adoption Credit and Exclusion - A taxpayer can claim a credit of up to $13,460 for 2016 for the expense of adopting
an eligible child. The same qualifying expenses cannot be used for both the credit and exclusion.
Qualified expenses are adoption
fees, attorneys fees, curt costs, travel expenses (including meals and lodging) while away from home and re-adoption expenses related
the to adoption of a foreign child.
The limit is a cumulative, per child limit over all tax years (not an annual limit)
An
attempt that leads to adoption and any unsuccessful attempt to adopt a different child are treated as one effort.
Unsuccessful
efforts - the credit and exclusion can be claimed for expenes to adopt a U.S. citizen or resident child even if the adoption never
becomes final. The credit and exclusion cannot be claimed for a foreing child unless the adoption becomes final.
Eligible
child: a child under 18 years old or physically or mentally incapable of self care (excludes adopting a spouse's child)
Special
Needs Child - The $13,460 credit or exclusion is allowed even if the taxpayer does not have qualified adoption expenses.
Modified
AGI phaseout $ 201,920 to $ 241,919. $241,920 or more you are not eligible for the credit.
