Instructions For Form 8839 - 2005
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Department of the Treasury
Internal Revenue Service
Instructions for Form 8839
Qualified Adoption Expenses
You cannot exclude employer-provided adoption
General Instructions
!
benefits if your employer is an S-corporation in
which you own more than 2% of the stock or
CAUTION
What’s New
stock with more than 2% of the voting power.
New rules apply in determining when a foreign adoption
Definitions
becomes final. See Rev. Proc. 2005-31, 2005-26 I.R.B.
1374, available at
Eligible Child
ar01.html.
An eligible child is:
•
Any child under age 18. If the child turned 18 during
Purpose of Form
the year, the child is an eligible child for the part of the
Use Form 8839 to figure the amount of your adoption
year he or she was under age 18.
•
credit and any employer-provided adoption benefits you
Any disabled person physically or mentally unable to
can exclude from your income. You can claim both the
take care of himself or herself.
credit and the exclusion for expenses of adopting an
If you and another person (other than your
eligible child. But, you cannot claim both for the same
!
spouse if filing jointly) adopted or tried to adopt an
expenses.
eligible child, see the instructions for line 2 (or line
CAUTION
Adoption credit. Use Form 8839, Part II, to figure the
19 if applicable), on page 4 before completing Part II (or
amount of any adoption credit you can take on Form
Part III).
1040, line 53, or Form 1040A, line 34. You may be able
Employer-Provided Adoption Benefits
to take this credit if any of the following applies.
Employer-provided adoption benefits are amounts your
1. You paid qualified adoption expenses in:
employer paid directly to either you or a third party for
a. 2004 and the adoption was not final at the end of
qualified adoption expenses under a qualified adoption
2004, or
assistance program. Generally, a qualified adoption
b. 2005 and the adoption became final in or before
assistance program is a separate written plan set up by
2005.
an employer to provide adoption assistance to its
2. You adopted a child with special needs and the
employees. For more details, see Pub. 15-B, Employer’s
adoption became final in 2005.
Tax Guide to Fringe Benefits.
3. You paid expenses after 1996 in connection with
Employer-provided adoption benefits should be shown
the adoption of an eligible foreign child and the adoption
in box 12 of your Form(s) W-2 with code T. Your salary
became final in 2005. See the instructions for line 1,
may have been reduced to pay these benefits. You may
column (e), that begin on page 2.
also be able to exclude amounts not shown in box 12 of
4. You have a carryforward of an adoption credit from
your Form W-2 if all of the following apply.
•
a prior year.
You adopted a child with special needs. See the
instructions for line 1, column (d), on page 2 for the
definition of a child with special needs.
Income exclusion for employer-provided adoption
•
The adoption became final in 2005.
benefits. Use Form 8839, Part III, to figure the amount
•
Your employer had a qualified adoption assistance
of any employer-provided adoption benefits you can
program as described above.
exclude from your income on Form 1040 or 1040A, line
7. You may be able to exclude these benefits from
Qualified Adoption Expenses
income if your employer had a qualified adoption
Qualified adoption expenses are reasonable and
assistance program (see Employer-Provided Adoption
necessary expenses directly related to, and for the
Benefits on this page) and any of the following applies.
•
principal purpose of, the legal adoption of an eligible
You received employer-provided adoption benefits in
child.
2005. However, special rules apply for benefits received
in connection with the adoption of an eligible foreign
Qualified adoption expenses include:
•
Adoption fees.
child. See the instructions for line 1, column (e), that
•
begin on page 2.
Attorney fees.
•
•
Court costs.
You adopted a child with special needs and the
•
Travel expenses (including meals and lodging) while
adoption became final in 2005.
•
away from home.
You received employer-provided adoption benefits
•
Re-adoption expenses relating to the adoption of a
after 1996 in connection with the adoption of an eligible
foreign child.
foreign child and the adoption became final in 2005. See
Qualified adoption expenses do not include expenses:
the instructions for line 1, column (e), that begin on page
•
For which you received funds under any state, local, or
2.
federal program.
•
You must complete Form 8839, Part III, before you
That violate state or federal law.
•
can figure the credit, if any, in Part II.
For carrying out a surrogate parenting arrangement.
Cat. No. 23077T
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