Instructions for Form 8839
taxmap/instr2/i8839-004.htm#TXMP646c455fWhen you can take the adoption credit or exclusion depends on whether the eligible child is a citizen or resident of the United States (including U.S. possessions) at the time the adoption effort began (domestic
adoption).
taxmap/instr2/i8839-004.htm#TXMP41d90b26If the eligible child is a U.S. citizen or resident, you can take the adoption credit or exclusion even if the adoption never became final. Take the credit or exclusion as shown in the following tables.
| Domestic Adoption |
|---|
IF you pay
qualifying expenses in...
| THEN take the credit in... |
|---|
| Any year before the year the adoption becomes final | The year
after the year
of the payment.
|
| The year the adoption becomes final | The year the adoption
becomes final.
|
| Any year after the year the adoption becomes final | The year of the payment. |
| IF your employer pays for qualifying expenses under an adoption assistance program
in... | THEN take the
exclusion in....
|
| Any year | The year of the payment. |
taxmap/instr2/i8839-004.htm#TXMP078b94daIf you adopt a U.S. child with special needs, you may be able to exclude up to $13,360 and claim a credit for additional expenses up to $13,360 (minus any qualified adoption expenses claimed for the same child in a prior year). The exclusion may be available, even if you or your employer did not pay any qualified adoption expenses, provided the employer has a written qualified adoption assistance program. See the instructions for line 1, column (d), later, for more
information.
taxmap/instr2/i8839-004.htm#TXMP4fa0ea61If the eligible child is a foreign child, you cannot take the adoption credit or exclusion unless the adoption becomes final. A child is a foreign child if he or she was not a citizen or resident of the United States (including U.S. possessions) at the time the adoption effort began. Take the credit or exclusion as shown on the following
tables.
| Foreign Adoption |
|---|
IF you pay
qualifying expenses in...
| THEN take the credit in... |
|---|
| Any year before the year the adoption becomes final | The year the adoption
becomes final.
|
| The year the adoption becomes final | The year the adoption
becomes final.
|
| Any year after the year the adoption becomes final | The year of the payment. |
| IF your employer pays for qualifying expenses under an adoption assistance program
in... | THEN take the
exclusion in....
|
| Any year before the year the adoption becomes final | The year the adoption
becomes final.
|
| The year the adoption becomes final | The year the adoption
becomes final.
|
| Any year after the year the adoption becomes final | The year of the payment. |
If your employer makes adoption assistance payments in a year before the adoption of a foreign child is final, you must include the payments in your income in the year of the payment. Then, on your return for the year the adoption becomes final, you can make an adjustment to take the
exclusion.
 | Your employer is not required to withhold income tax on payments for qualifying expenses under an adoption assistance program. If you must include the payments in income in the year paid because your adoption of a foreign child is not final, your withholding may not be enough to cover the tax on those payments. You may need to give your employer a new Form W-4 to adjust your withholding or make estimated tax payments to avoid a penalty for underpayment of estimated
tax. |
taxmap/instr2/i8839-004.htm#TXMP126371fctaxmap/instr2/i8839-004.htm#TXMP65fa801bComplete 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#TXMP121a7223You 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.
After your return is received by the IRS, you may be asked to substantiate any qualified adoption expenses you
paid.
taxmap/instr2/i8839-004.htm#TXMP556d93a9For a domestic adoption of a U.S. child that was not finalized in 2011 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#TXMP4fa1b736For domestic adoptions finalized in 2011 or before, and foreign adoptions finalized in 2011, 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#TXMP6f4b50f9For 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#TXMP75752f20If you made more than one attempt to adopt one eligible U.S. 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 U.S. 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 2011 information on the same line (Child 1, Child 2, or Child 3) that you used in the prior
year. |
taxmap/instr2/i8839-004.htm#TXMP54cba60eIf 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 and 10 and 11 for each child. But fill in lines 7 through 9 and 12 on only one Form 8839. The amount on line 12 of that Form 8839 should be the combined total of the amounts on line 11 of all the Forms
8839.
For Part III, fill in lines 13 through 16, 18, 22, and 23 for each child. But fill in lines 17, 19 through 21, 24, and 25 on only one Form 8839. The amount on line 17 of that Form 8839 should be the combined total of the amounts on line 16 of all the Forms 8839. The amount on line 24 of that form should be the combined total of the amounts on line
23.
taxmap/instr2/i8839-004.htm#TXMP3fabe261A disabled individual is an eligible child, regardless of the individual's age at the time of adoption, if the individual is physically or mentally unable to take care of himself or herself.
taxmap/instr2/i8839-004.htm#TXMP29a986c4A 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 (U.S.
child).
- 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 an exclusion or credit for the adoption of a U.S. child with special needs even if you did not pay any qualified adoption expenses. See line 18 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#TXMP6e0a89b9A 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#TXMP43345964If you paid qualified adoption expenses in 2011 or any prior year in connection with the adoption of a foreign child and the adoption became final in 2011, you can use the total expenses you paid in 2011 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
2011) | 1. | Enter the total employer-provided adoption benefits you received in
2011 and all prior years for the adoption of the foreign child
| 1. | | | 2. | Enter
$13,360. If you and another person (other than your spouse if filing jointly) each received employer-provided adoption benefits in 2011 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 13. If necessary, cross out the
preprinted amount on line 13 and enter the result above the preprinted amount
| 3. | | | Next: | | | | |
- Enter -0- on Form 8839, line 14.
- Enter the amount from line 3 above on Form 8839, line
15.
- On Form 8839, line 16, enter the total amount of employer-provided adoption benefits received in
2011 and all prior years.
On the dotted line next to line 16, enter "PYAB" and the total amount of
benefits you received
before 2011.
- Complete Form 8839 through line 24. 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 25.
| | | | 4. | Is the amount on your 2011 Form 8839, line 24, less than the amount on Form 8839, line
17? | | | | | □ No. Skip lines 4 through 6 and go to line 7.
| | | | | □ Yes. Subtract Form 8839, line 24 from line 17
| 4. | | | 5. | Enter the total employer-provided adoption benefits you received
before 2011
included on Form 8839, line 16, 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 25. 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 24 | 7. | | | 8. | Enter the total
2011
employer-provided adoption benefits included on Form 8839, line 16, 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 $13,360 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 $13,360 limit must be divided between the two of you.
You can divide it in any way you both agree. Enter your share of the $13,360
limit on line 2 of the worksheet above.
|
|
If the adoption did not become final by the end of 2011, you cannot take the adoption credit for that child in 2011. 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 2011 in connection with the adoption of a foreign child and the adoption did not become final by the end of 2011, 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#TXMP72ebf402If you received employer-provided adoption benefits before 2011 in connection with the adoption of a foreign child and the adoption became final in 2011, you may be able to exclude part or all of those benefits from your 2011 income. To find out if you can, complete the Exclusion of Prior Year Benefits Worksheet. You also must use that worksheet to complete Form 8839, Part III, and to figure any taxable benefits to enter on Form 8839, line
25.
If the adoption of more than one eligible foreign child became final in 2011, complete lines 1 through 3 of the Exclusion of Prior Year Benefits Worksheet 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 2011 or earlier, and attach the appropriate
documentation. |
taxmap/instr2/i8839-004.htm#TXMP2b285e83Enter 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#TXMP552e85cfCheck the box in column (g) if the adoption for each child became final in 2011 or
earlier.
| Attach the appropriate documentation, listed earlier, supporting your claim for a finalized adoption for each child for whom you checked this
box. |
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