Instructions for Form 8839
taxmap/instr2/i8839-004.htm#TXMP58f15b1bFrom 1997 through 2009, the adoption credit had a 5-year carryforward
provision. Because the carryforwards are used on a first-in, first-out basis, if
you are claiming a carryforward you must have a Form 8839 on file for all prior
years for which the carryforward was allowable.
taxmap/instr2/i8839-004.htm#TXMP1c21ab0cIf you did not previously file Form 8839 for the same adoption
(or adoption attempt) but are claiming a credit carryforward in 2010, you must
amend your prior year income tax returns and file Form 8839 for the applicable
years before you claim a credit carryforward in 2010.
 | Amending prior year returns may have an effect on other credits
claimed in that year, including, but not limited to, the child tax credit. |
In 2008, Naomi White adopted an eligible child. Naomi's allowable
credit was $11,650 (the 2008 dollar limitation), but Naomi had no tax liability
for the year. Because Naomi would have received no tax benefit from the credit,
she did not file a 2008 Form 8839. Naomi also did not file a Form 8839 for 2009.
For 2010, Naomi files a Form 8839 in which she claims a carryforward from 2008.
Before Naomi's 2010 Form 8839 can be processed, Naomi must file amended returns
for 2008 and 2009, attaching Forms 8839 for those years and showing the amount
(if any) that she could claim for those years.
 | Use Form 1040X, Amended Individual Income Tax Return, if
you are filing an amended income tax return. Form 1040X and its instructions are
available at IRS.gov. You will also need the instructions (including worksheets)
for the return you are amending, along with that year's Form 8839 and
instructions. See the Instructions for Form 1040X for details on how to obtain
prior year forms and instructions. |
taxmap/instr2/i8839-004.htm#TXMP1e445851The credit and income limitations that apply to a carryforward
are based on the limits in effect for the year the carryforward first arose,
rather than the year or years in which the carryforward is claimed. If you did
not pay additional adoption expenses in a later year related to that adoption or
adoption attempt, you cannot increase your carryforward amount in a later year.
Steve Thomas paid qualified adoption expenses in 2004, 2005,
and 2006 in connection with the adoption of an eligible child from another
country. The adoption became final in 2006. Under the rules applicable to
foreign adoptions, the qualified adoption expenses are all treated as if paid in
2006 and are all subject to the 2006 dollar and income limitations. The maximum
tax credit in 2006 was $10,960, and Steve's income in 2006 was less than the
modified adjusted gross income (MAGI) phaseout. Steve's tax liability for 2006
was $7,500. Steve used $7,500 of his adoption credit to reduce his 2006 tax
liability to zero and carried forward the remaining $3,460. Steve paid no
additional adoption expenses in connection with the adoption in later years.
Steve filed Forms 8839 for 2007, 2008, and 2009, but he was
unable to use any carryforward during those years. For 2010, Steve filed a Form
8839 seeking a refund of his unused carryforward. Even though the 2010 dollar
limitation on the credit is $13,170, Steve's refundable credit for 2010 is
$3,460 ($10,960 – $7,500).
The facts are the same as in Example 1, except that Steve Thomas
sold a business in 2006, which resulted in his MAGI for the year being $210,000.
The income limitation (MAGI phaseout range) for 2006 began at $164,410 and ended
at $204,410. Because Steve's MAGI for 2006 was greater than $204,410, Steve's
credit for 2006 is permanently disallowed. Steve can neither claim the credit on
his 2006 return nor carry forward the credit into later years.
The following table shows the maximum dollar limitation and modified
adjusted gross income phaseout range for the previous five years.
Prior Year Credit Limitations
| Year | Maximum Tax Credit | MAGI Phaseout Range |
|---|
| 2010 | $13,170 | $182,520–$222,520 |
| 2009 | $12,150 | $182,180–$222,180 |
| 2008 | $11,650 | $174,730–$214,730 |
| 2007 | $11,390 | $170,820–$210,820 |
| 2006 | $10,960 | $164,410–$204,410 |
| 2005 | $10,630 | $159,450–$199,450 |
You must provide the required documentation to have your claim
for the refundable credit carryforward processed. See
Carryforward documentation requirements
on this page. You must also complete Part I, line 1 for each eligible child to
document the carryforward. See
Carryforward From Prior Year on page 5.
taxmap/instr2/i8839-004.htm#TXMP0537b631taxmap/instr2/i8839-004.htm#TXMP5b7802c1Complete all columns that apply to the eligible child you adopted
or tried to adopt and attach the appropriate documentation. If you do not give
correct or complete information and attach the appropriate documentation, your
credit and any exclusion may be disallowed.
taxmap/instr2/i8839-004.htm#TXMP357eefbaYou must provide at least one of the documents described below
to support your claim for each eligible child on line 1. Attach the documents to
Form 8839 and file with your income tax return. Copies are acceptable unless
otherwise specified. You may redact sensitive personal information from an
adoption order or decree or from a special needs determination; however, the IRS
may require you to provide an unredacted copy at a later date.
Be sure to write your name and social security number on each
document. Because of these documentation requirements, you must file your income
tax return and Form 8839 by paper only. You cannot file electronically.
taxmap/instr2/i8839-004.htm#TXMP35518b55For a domestic adoption that was not finalized in 2010 or earlier,
attach one or more of the following documents.
- An adoption taxpayer identification number, obtained by the
taxpayer for the child, included on the taxpayer’s income tax return
(instead of attaching a document).
- A home study completed by an authorized placement agency.
- A placement agreement with an authorized placement agency.
- A document signed by a hospital official authorizing the release
of a newborn child from the hospital to the taxpayer for legal adoption.
- A court document (a copy showing official seal), ordering
or approving the placement of a child with the taxpayer for legal adoption.
- An original affidavit or notarized statement signed under
penalties of perjury from an adoption attorney, government official, or other
authorized person, stating that the signer:
- Placed or is placing a child with the taxpayer for legal
adoption, or
- Is facilitating the adoption process for the taxpayer in
an official capacity, with a description of the actions taken to facilitate the
process.
taxmap/instr2/i8839-004.htm#TXMP2a91cee8For domestic adoptions finalized in 2010 or before, and foreign
adoptions finalized in 2010, check the box in column (g) and attach one or more
of the following documents:
- For a domestic or foreign adoption finalized in the United
States, the adoption order or decree (a copy showing official seal).
- For an adoption governed by the Hague Convention and finalized
in another country:
- The Hague Adoption Certificate (Immigrating Child),
- The IH-3 visa, or
- A foreign adoption decree (a copy showing official seal)
translated into English.
- For a foreign adoption from a country that is not party to
the Hague Convention:
- A foreign adoption decree (a copy showing official seal)
translated into English or
- An IR-2 or IR-3 visa.
taxmap/instr2/i8839-004.htm#TXMP220a1ff0For adoption of a child with special needs, in addition to the
requirements above, you must check the box in column (d) and attach a copy of
the state determination of special needs to your income tax return.
For these purposes, an order or decree (a copy showing official
seal) must include information establishing that the taxpayer's adoption of the
eligible child has been finalized and the date it was finalized. A special needs
determination must include information establishing that the state has made a
determination of special needs for the eligible child.
taxmap/instr2/i8839-004.htm#TXMP709a2178If you are filing Form 8839 only to claim the credit for a carryforward
from a previous year (2005–2009), you must attach documentation to support
your claim for the credit carryforward. If the adoption was finalized in 2010 or
earlier, attach one or more of the documents listed under
Domestic and foreign adoptions that have been finalized, earlier. If the adoption has not been finalized, attach one
or more of the documents listed under
Domestic adoptions that have not been finalized, earlier.
| If this is the first year that you are filing Form 8839 to
claim the credit carryforward, you must amend prior year returns. See Amending
prior year returns under Carryforward From Prior Years (2005–2009) on page
3. |
taxmap/instr2/i8839-004.htm#TXMP609bae4cIf you made more than one attempt to adopt one eligible child,
combine the amounts you spent and complete only the
Child 1
line. Do not report the additional attempt(s) on the
Child 2
or
Child 3
line. Complete the
Child 2
or
Child 3
lines only if you adopted or tried to adopt two or three eligible children.
You planned to adopt one child. You had one unsuccessful attempt
to adopt a child and later successfully adopted a different child. Complete only
the
Child 1
line because you made more than one attempt to adopt one eligible
child.
| If you filed Form 8839 for a prior year in connection with
this adoption, enter your 2010 information on the same line (Child 1, Child 2,
or Child 3) that you used in the prior year. |
taxmap/instr2/i8839-004.htm#TXMP573a6eedIf you adopted or tried to adopt more than three eligible children,
fill in and attach as many Forms 8839 as you need to list them. Also, enter
See Attached
to the right of the
Caution below line 1.
For Part II, fill in lines 2 through 6 for each child. But fill
in lines 7 through 14 on only one Form 8839. The amount on line 7 of that Form
8839 should be the combined total of the amounts on line 6 of all the Forms
8839.
For Part III, fill in lines 15 through 18 and 20 for each child.
But fill in lines 19 and 21 through 27 on only one Form 8839. The amount on line
19 of that Form 8839 should be the combined total of the amounts on line 18 of
all the Forms 8839. The amount on line 21 of that form should be the combined
total of the amounts on line 20.
taxmap/instr2/i8839-004.htm#TXMP43344f7eIf you are claiming a credit carryforward from an adoption (or
attempted adoption) in a prior year, you must include that eligible child (or
children) in Part I and attach appropriate documentation. If you cannot give
complete information about an eligible child you tried to adopt in a prior year
because the adoption was either unsuccessful or was not final by the end of
2010, complete the entries that you can on line 1. Enter
See Attached
in the columns for which you do not have the information. Then attach one or
more of the documents listed on page 4 under
Domestic adoptions that have not been finalized.
| You must attach documentation to support your claim for the
credit carryforward. See Documentation requirements, earlier. |
taxmap/instr2/i8839-004.htm#TXMP25ee3e5fA child is disabled if the child is physically or mentally unable
to take care of himself or herself.
taxmap/instr2/i8839-004.htm#TXMP3e95bd74A child is a child with special needs if all three of the following
statements are true.
- The child was a citizen or resident of the United States or
its possessions at the time the adoption effort began.
- A state (including the District of Columbia) has determined
that the child cannot or should not be returned to his or her parents' home.
- The state has determined that the child will not be adopted
unless assistance is provided to the adoptive parents. Factors used by states to
make this determination include:
- The child's ethnic background and age,
- Whether the child is a member of a minority or sibling group,
and
- Whether the child has a medical condition or a physical,
mental, or emotional handicap.
You may be able to claim a credit or exclusion for the adoption
of a child with special needs even if you did not have any qualified adoption
expenses. See line 20 and the instructions for line 5.
| If you check the box in column (d) indicating the child has
special needs, be sure to attach a copy of the state's determination to Form
8839. |
taxmap/instr2/i8839-004.htm#TXMP73086e60A child is a foreign child if he or she was not a citizen or
resident of the United States or its possessions at the time the adoption effort
began.
taxmap/instr2/i8839-004.htm#TXMP73eff4b2If you paid qualified adoption expenses in 2010 or any prior
year in connection with the adoption of a foreign child and the adoption became
final in 2010, you can use the total expenses you paid in 2010 and all prior
years in determining the amount to enter on line 5. If you and another person
(other than your spouse if filing jointly) each paid qualified adoption expenses
to adopt the same child, the total qualified expenses must be divided between
the two of you. You can divide it in any way you both agree.
taxmap/instr2/i8839-004.htm#w23077t01 |
Exclusion of Prior Year Benefits Worksheet
(for the adoption of a foreign child that became final
in 2010)
| 1. | Enter the total employer-provided adoption benefits you
received in
2010 and all prior years for the adoption of the foreign child
| 1. | | | 2. | Enter
$13,170. If you and another person (other than your spouse
if filing jointly) each received employer-provided adoption benefits in 2010 or
any prior year to adopt the same child, see instructions below.
| 2. | | | 3. | Enter the
smaller
of line 1 or line 2 here and on Form 8839, line 15. If necessary, cross out the
preprinted amount on line 15 and enter the result above the preprinted amount
| 3. | | | Next: | | | | |
- Enter -0- on Form 8839, line 16.
- Enter the amount from line 3 above on Form 8839, line
17.
- On Form 8839, line 18, enter the total amount of employer-provided
adoption benefits received in
2010 and all prior years.
On the dotted line next to line 18, enter "PYAB" and the total amount of
benefits you received
before 2010.
- Complete Form 8839 through line 26. Then, complete
lines 4 through 9 below to figure the amount of any prior year benefits you can
exclude and the taxable benefits, if any, to enter on Form 8839, line 27.
| | | | 4. | Is the amount on your 2010 Form 8839, line 26, less than
the amount on Form 8839, line 19? | | | | | □ No. Skip lines 4 through 6 and go to line 7.
| | | | | □ Yes. Subtract Form 8839, line 26 from line 19
| 4. | | | 5. | Enter the total employer-provided adoption benefits you
received
before 2010
included on Form 8839, line 18, for all children
| 5. | | | 6. | Taxable benefits.
Subtract line 5 from line 4. If zero or less, enter -0-. Enter the result here
and on Form 8839, line 27. If more than zero, also include this amount on line 7
of Form 1040 or line 8 of Form 1040NR, and enter "AB" on the dotted line
| 6. | | | 7. | Enter the amount from Form 8839, line 26 | 7. | | | 8. | Enter the total
2010
employer-provided adoption benefits included on Form 8839, line 18, for all
children
| 8. | | | 9. | Prior year excluded benefits. Subtract line 8 from line 7. If zero or less,
stop; you cannot exclude any of your prior year benefits
| 9. | | | | Next.
Figure the total you would enter on line 7 of Form 1040 or line 8 of Form 1040NR
before
you exclude the amount from line 9 above. Then, subtract the amount from line 9
above from that total. Enter the result on line 7 of Form 1040 or line 8 of Form
1040NR. On the dotted line next to the line for wages, enter "PYAB" and the
amount from line 9 above.
|
| Line 2.
The maximum amount of employer-provided adoption benefits that can be excluded
from income is $13,170 per child. If you and another person (other than your
spouse if filing jointly) each received employer-provided adoption benefits to
adopt the same child, the $13,170 limit must be divided between the two of you.
You can divide it in any way you both agree. Enter your share of the $13,170
limit on line 2 of the worksheet above.
|
|
If the adoption did not become final by the end of 2010, you
cannot take the adoption credit for that child in 2010. If the adoption becomes
final in a later year, you may be able to take a credit for the expenses in that
year.
| The Hague Convention on Protection of Children and Co-operation
in Respect of Intercountry Adoption (Hague Adoption Convention) entered into
force for the United States on April 1, 2008. The Hague Adoption Convention
applies if you adopted a child from a country that is party to the Hague
Adoption Convention and you filed your application and petition (Forms I-800A
and I-800) with the U.S. Citizenship and Immigration Service after March 31,
2008. See
www.adoption.state.gov
for more information on the Hague Adoption Convention, the application and
petition, and a complete list of countries that are parties to the Convention. |
If you received employer-provided adoption benefits in 2010 in
connection with the adoption of a foreign child and the adoption did not become
final by the end of 2010, you must include the benefits in the total entered on
Form 1040, line 7, or Form 1040NR, line 8. Also, enter
AB
(adoption benefits) on the dotted line next to Form 1040, line 7, or Form
1040NR, line 8. If the adoption becomes final in a later year, you may be able
to exclude the benefits from your income in that year.
taxmap/instr2/i8839-004.htm#TXMP5f638cb4If you received employer-provided adoption benefits before 2010
in connection with the adoption of a foreign child and the adoption became final
in 2010, you may be able to exclude part or all of those benefits from your 2010
income. To find out if you can, complete the worksheet on page 5. You also must
use the worksheet to complete Form 8839, Part III, and to figure any taxable
benefits to enter on Form 8839, line 27.
If the adoption of more than one eligible foreign child became
final in 2010, complete lines 1 through 3 of the worksheet on page 5 separately
for each foreign child and use the combined totals to complete lines 4 through 9
of the worksheet.
| If you check the box in column (e), you must also check the
box in column (g), indicating the adoption was finalized in 2010 or earlier, and
attach the appropriate documentation. |
taxmap/instr2/i8839-004.htm#TXMP19461265Enter the child's identifying number. This can be a social security
number (SSN), an adoption taxpayer identification number (ATIN), or an
individual taxpayer identification number (ITIN).
Enter the child's SSN if the child has an SSN or you will be
able to get an SSN in time to file your tax return. Apply for an SSN using Form
SS-5.
If you are in the process of adopting a child who is a U.S. citizen
or resident alien but you cannot get an SSN for the child in time to file your
return, apply for an ATIN using Form W-7A. However, if the child is not a U.S.
citizen or resident alien, apply instead for an ITIN using Form W-7.
taxmap/instr2/i8839-004.htm#TXMP37f6e3b3Check the box in column (g) if the adoption for each child became
final in 2010 or earlier.
| Attach the appropriate documentation, listed beginning on
page 4, supporting your claim for a finalized adoption for each child for whom
you checked this box. |
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