taxmap/instr2/i8839-001.htm#TXMP48f5ff8f
Purpose of Form(p1)

Use Form 8839 to figure your adoption credit and any employer-provided adoption benefits you can exclude from your income. You can claim both the exclusion and the credit for expenses of adopting an eligible child. For example, depending on the cost of the adoption, you may be able to exclude up to $12,650 from your income and also be able to claim a credit of up to $12,650. But, you cannot claim both a credit and exclusion for the same expenses. See Qualified Adoption Expenses and Employer-Provided Adoption Benefits, later.

Use Form 8839, Part II, to figure the adoption credit you can take on Form 1040, line 53 or Form 1040NR, line 50. Check box c on that line and enter 8839 in the space next to box c. You may be able to take this credit in 2012 if any of the following statements are true.

1. You paid qualified adoption expenses in connection with the adoption of an eligible U.S. child (including any expenses paid in connection with adopting an eligible U.S. child with special needs) in:
   1. 2011 and the adoption was not final at the end of 2011, or
   2. 2012 and the adoption became final in or before 2012.
2. You adopted an eligible U.S. child with special needs and the adoption became final in 2012. (In this case, you may be able to take the credit even if you did not pay any qualified adoption expenses.)
3. You paid qualified adoption expenses in connection with the adoption of an eligible foreign child in:
   1. 2012 or prior years and the adoption became final in 2012, or
   2. 2012 and the adoption became final before 2012.
      See Column (e), later.

Use Form 8839, Part III, to figure the employer-provided adoption benefits you can exclude from your income on Form 1040, line 7, or Form 1040NR, line 8. You may be able to exclude these benefits from income if your employer had a written qualified adoption assistance program (see Employer-Provided Adoption Benefits, later) and any of the following statements are true.

1. You received employer-provided adoption benefits in 2012. However, special rules apply for benefits received in connection with the adoption of an eligible foreign child. See Column (e), later.
2. You adopted an eligible U.S. child with special needs and the adoption became final in 2012.
3. You received employer-provided adoption benefits in connection with the adoption of an eligible foreign child in:
   1. 2012 or prior years and the adoption became final in 2012, or
   2. 2012 and the adoption became final before 2012.
      See Column (e), later.

For purposes of calculating the adoption credit in Part II, qualified adoption expenses (defined later) do not include expenses reimbursed by an employer under a written qualified adoption assistance program (see Employer-Provided Adoption Benefits, later). For this reason, you must complete Form 8839, Part III, before you can figure the credit, if any, in Part II. But see Child with special needs, later.

The income limit on the adoption credit or exclusion is based on modified adjusted gross income (MAGI). For 2012, use the following table to see if the income limit will affect your credit or exclusion.

IF your MAGI is...	THEN the income limit...
$189,710 or less	will not affect your credit or exclusion.
Between $189,711 and $229,709	will reduce your credit or exclusion.
$229,710 or more	will eliminate your credit or exclusion.