Instructions For Form 8839 - 2010 printable pdf download

2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 8839

Qualified Adoption Expenses

Note. If additional information with respect to Form 8839

Adoption credit. Use Form 8839, Part II, to figure the

develops later in the filing season, the IRS will make that

adoption credit you can take on Form 1040, line 71,

information available at

checkbox b or Form 1040NR, line 66, checkbox b. You may

be able to take this credit in 2010 if any of the following

What’s New

statements are true.

1. You paid qualified adoption expenses in:

Expanded adoption credit. The adoption credit is now

a. 2009 and the adoption was not final at the end of

refundable, meaning that you may be able to claim it even if

2009, or

you owe no tax, for qualified adoption expenses that first

b. 2010 and the adoption became final in or before 2010.

became allowable in 2010 and for adoptions finalized in

2. You adopted a child with special needs and the

2010. Adoption credit carryforwards from 2005 through 2009

adoption became final in 2010. (In this case, you may be

also are refundable in 2010. See Notice 2010-66, 2010-42

able to take the credit even if you did not pay any qualified

I.R.B. 437, available at

adoption expenses.)

html.

3. You paid qualified adoption expenses in connection

Previously, the adoption credit was nonrefundable,

with the adoption of an eligible foreign child in:

meaning that it only could be used to reduce your tax

a. 2010 or prior years and the adoption became final in

liability, but credit amounts in excess of tax liability could be

2010, or

carried forward for up to 5 subsequent years.

b. 2010 and the adoption became final before 2010.

The maximum credit and the exclusion for

See the instructions for line 1, column (e), on page 6.

employer-provided benefits have each increased to $13,170

4. You have a carryforward of an adoption credit from a

per eligible child. This amount begins to phase out if you

prior year.

have modified adjusted gross income in excess of $182,520

and is completely phased out for modified adjusted gross

Income exclusion for employer-provided adoption

income of $222,520 or more.

benefits. Use Form 8839, Part III, to figure the

New documentation requirements. To claim the

employer-provided adoption benefits you can exclude from

refundable adoption credit, you must complete and attach

your income on Form 1040, line 7, or Form 1040NR, line 8.

Form 8839 to your income tax return. Additionally, you must

You may be able to exclude these benefits from income if

include one or more adoption-related documents to support

your employer had a qualified adoption assistance program

your claim for the credit. Documentation must be provided

(see Employer-Provided Adoption Benefits on page 2) and

for each eligible child claimed on Form 8839 and is required

any of the following statements are true.

whether the credit is claimed for a 2010 adoption (or

1. You received employer-provided adoption benefits in

adoption attempt) or for a credit carryforward from a

2010. However, special rules apply for benefits received in

previous adoption (or adoption attempt). The documentation

connection with the adoption of an eligible foreign child. See

required varies, depending on whether the adoption has

the instructions for line 1, column (e), on page 6.

been finalized and whether the child has special needs. See

2. You adopted a child with special needs and the

the instructions for line 1 for the specific requirements for

adoption became final in 2010.

each child claimed.

3. You received employer-provided adoption benefits in

Paper filing required. Because of the new documentation

connection with the adoption of an eligible foreign child in:

requirements, if you are filing Form 8839 to claim the

a. 2010 or prior years and the adoption became final in

adoption credit or to exclude from income any

2010, or

employer-provided adoption benefits, you cannot file your

b. 2010 and the adoption became final before 2010.

income tax return and Form 8839 electronically. You must

See the instructions for line 1, column (e), on page 6.

file paper returns. Mail your return with Form 8839 and all

required documentation to the address listed in your tax

For purposes of calculating the adoption credit in Part II,

return instructions.

qualified adoption expenses (defined on page 2) do not

General Instructions

include expenses reimbursed by an employer under a

qualified adoption assistance program (defined on page 2).

For this reason, you must complete Form 8839, Part III,

Purpose of Form

before you can figure the credit, if any, in Part II.

Use Form 8839 to figure your adoption credit and any

You cannot exclude employer-provided adoption

employer-provided adoption benefits you can exclude from

benefits if your employer is an S corporation in which

your income. You can claim both the exclusion and the

you own more than 2% of the stock or stock with

CAUTION

credit for expenses of adopting an eligible child. For

more than 2% of the voting power.

example, depending on the cost of the adoption, you may be

able to exclude up to $13,170 from your income and also be

Note on welfare benefits and the adoption credit. Any

able to claim a credit of up to $13,170. But, you cannot claim

refund you receive as a result of taking the adoption credit

both a credit and exclusion for the same expenses. See

will not be used to determine if you are eligible for the

Qualified Adoption Expenses and Employer-Provided

following programs or how much you can receive from them.

Adoption Benefits on page 2.

But if the refund you receive because of the adoption credit

Cat. No. 23077T

Instructions For Form 8839 - 2010

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