Which of the following accounts for the Adoption Credit limit?

The Adoption Credit allows taxpayers to receive a credit for qualifying adoption expenses, and the correct answer refers to the per-child limit established for this credit. As of the tax year 2023, the Adoption Credit provides a maximum of $13,360 per adopted child, which reflects the costs associated with adoption, including use of an adoption agency, attorney's fees, and other related expenses.

This limit is significant because it means that families can claim this amount for each child they adopt, providing considerable financial relief for the expenses incurred during the adoption process. The per-child limit is a critical aspect of the credit, as it underscores its purpose of assisting families taking the step of adopting children.

The other choices do not accurately reflect the structure of the Adoption Credit. For instance, a recurring annual or lifetime limit doesn't apply in the same manner as the per-child limit, clarifying why those options are not correct. The Adoption Credit is designed specifically to aid in individual adoption cases rather than applying an overarching limit across multiple adoptees in a family or as a cumulative lifetime figure. Understanding these limits is essential for accurately applying the Adoption Credit in tax situations.