What is the amount of adoption assistance that is excluded from income tax?

The correct answer regarding the amount of adoption assistance that is excluded from income tax is $13,840. This figure corresponds to the adoption assistance tax credit and exclusion for the tax year 2023. The IRS allows a taxpayer to exclude a certain amount of adoption assistance provided by an employer from their gross income, encouraging the adoption process.

Each year, this exclusion amount can be adjusted for inflation or tax law changes, but for 2023, $13,840 is a key figure that reflects the maximum exclusion allowable under the law. Understanding the specific amount is essential for tax compliance and ensuring that taxpayers leverage these benefits fully. The other amounts listed do not represent the current exclusion limit for the tax year, making it crucial to be aware of the IRS guidelines for the specific tax year in question.