Instructions For Form 8839 - 2005 Page 4
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If the adoption did not become final by the end of
2004 and 2005 if the adoption became final in 2005.
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2005, you cannot take the adoption credit for that child in
2005 if the adoption became final before 2005.
2005. If the adoption becomes final in a later year, you
But, if you adopted a child with special needs and the
may be able to take a credit for the expenses in that year.
adoption became final in 2005, enter $10,630 on line 5.
If you received employer-provided adoption benefits in
Line 8
2005 in connection with the adoption of a foreign child
and the adoption did not become final by the end of
Use the following chart to find your modified adjusted
2005, you must include the benefits in the total entered
gross income to enter on line 8.
on Form 1040 or 1040A, line 7. Also, enter “AB”
(adoption benefits) next to line 7. If the adoption becomes
IF you file. . .
THEN enter on line 8 the amount from. . .
final in a later year, you may be able to exclude the
Form 1040
Form 1040, line 38, increased by the total of
benefits from your income in that year. To find out when
any:
a foreign adoption is treated as final, see Rev. Proc.
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2005-31.
Exclusion of income from Puerto Rico
and
Exclusion of prior year benefits. If you received
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employer-provided adoption benefits after 1996 in
Amounts from –
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connection with the adoption of a foreign child and the
Form 2555, lines 43 and 48.
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adoption became final in 2005, you may be able to
Form 2555-EZ, line 18.
exclude part or all of those benefits from your 2005
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Form 4563, line 15.
income. To find out if you can, complete the worksheet
on page 3. You also must use the worksheet to complete
Form 1040A
Form 1040A, line 22.
Form 8839, Part III, and to figure any taxable benefits to
enter on Form 8839, line 31.
Line 18—Credit Carryforward to 2006
If the adoption of more than one foreign child became
final in 2005, complete lines 1 through 7 of the worksheet
If Form 8839, line 17, is smaller than line 14, you may
on page 3 separately for each foreign child and use the
have an unused credit to carry forward to the next 5
combined totals to complete lines 8 through 13 of the
years or until used, whichever comes first. Use the
worksheet.
worksheet on page 5 to figure the amount of your credit
carryforward. If you have any unused credit to carry
Column (f)
forward to 2006, be sure you keep the worksheet. You
Enter the child’s identifying number. This can be a social
will need it to figure your credit for 2006.
security number (SSN), an adoption taxpayer
Part III—Employer-Provided Adoption
identification number (ATIN), or an individual taxpayer
identification number (ITIN).
Benefits
To get an —
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Line 19
SSN, use Form SS-5.
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ATIN, use Form W-7A.
The maximum amount that can be excluded from income
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ITIN, use Form W-7.
for employer-provided adoption benefits is $10,630 per
child. If you and another person (other than your spouse
Part II—Adoption Credit
if filing jointly) each received employer-provided adoption
benefits in connection with the adoption of the same
Line 2
eligible child, the $10,630 limit must be divided between
The maximum adoption credit is $10,630 per child. If you
the two of you. You can divide it in any way you both
and another person (other than your spouse if filing
agree. Cross out the preprinted entry on line 19 and enter
jointly) each paid qualified adoption expenses to adopt
above line 19 your share of the $10,630 limit for that
the same child, the $10,630 limit must be divided
child.
between the two of you. You can divide it in any way you
both agree. Cross out the preprinted entry on line 2 and
Line 20
enter above line 2 your share of the $10,630 limit for that
Use the following chart to find the amount to enter on line
child.
20.
Line 3
IF the last year you filed Form
THEN enter on line 20 the total
If you filed Form 8839 in any year from 1998 through
8839 for the child was...
of the amounts for the child
from that Form 8839...
2004, enter the total of the amounts shown for the child
on lines 3 and 6 of the last form you filed. Otherwise,
1999, 2002, 2003, or 2004
Lines 20 and 24
enter the amount shown for the child on line 4 of your
2000 or 2001
Lines 16 and 20
1997 Form 8839.
1998
Lines 18 and 22
Line 5
1997
Line 15
Special rules apply if you paid expenses in
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connection with the adoption of an eligible foreign
Special rules apply if the prior year benefits were
!
child. See the instructions for line 1, column (e),
received in connection with the adoption of a
CAUTION
on page 2 for details.
foreign child and the adoption became final in
CAUTION
2005. See Exclusion of prior year benefits on this page.
Enter on line 5 the total qualified adoption expenses
you paid in:
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2004 if the adoption was not final by the end of 2005.
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