Instructions For Form 8839 - 2010 (Page 5 of 8) in pdf

Exclusion of Prior Year Benefits Worksheet

(for the adoption of a foreign child that became final in 2010)

Keep for Your Records

1. Enter the total employer-provided adoption benefits you received in 2010 and all prior years for the

adoption of the foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter $13,170. If you and another person (other than your spouse if filing jointly) each received

employer-provided adoption benefits in 2010 or any prior year to adopt the same child, see instructions

below. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Enter the smaller of line 1 or line 2 here and on Form 8839, line 15. If necessary, cross out the preprinted

amount on line 15 and enter the result above the preprinted amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

Enter -0- on Form 8839, line 16.

•

Enter the amount from line 3 above on Form 8839, line 17.

•

On Form 8839, line 18, enter the total amount of employer-provided adoption benefits received in 2010

and all prior years. On the dotted line next to line 18, enter “PYAB” and the total amount of benefits you

received before 2010.

•

Complete Form 8839 through line 26. 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 27.

4. Is the amount on your 2010 Form 8839, line 26, less than the amount on Form 8839, line 19?

No. Skip lines 4 through 6 and go to line 7.

Yes. Subtract Form 8839, line 26 from line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Enter the total employer-provided adoption benefits you received before 2010 included on Form 8839, line

18, for all children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Taxable benefits. Subtract line 5 from line 4. If zero or less, enter -0-. Enter the result here and on Form

8839, line 27. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Enter the amount from Form 8839, line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Enter the total 2010 employer-provided adoption benefits included on Form 8839, line 18, for all children . . .

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

Worksheet Instructions

Line 2. The maximum amount of employer-provided adoption benefits that can be excluded from income is $13,170 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

$13,170 limit must be divided between the two of you. You can divide it in any way you both agree. Enter your share of the $13,170 limit on

line 2 of the worksheet above.

Example. You planned to adopt one child. You had one

line 7 of that Form 8839 should be the combined total of the

unsuccessful attempt to adopt a child and later successfully

amounts on line 6 of all the Forms 8839.

adopted a different child. Complete only the “Child 1” line

For Part III, fill in lines 15 through 18 and 20 for each

because you made more than one attempt to adopt one

child. But fill in lines 19 and 21 through 27 on only one Form

eligible child.

8839. The amount on line 19 of that Form 8839 should be

the combined total of the amounts on line 18 of all the

If you filed Form 8839 for a prior year in connection

Forms 8839. The amount on line 21 of that form should be

with this adoption, enter your 2010 information on

the combined total of the amounts on line 20.

the same line (Child 1, Child 2, or Child 3) that you

CAUTION

Carryforward From Prior Year

used in the prior year.

If you are claiming a credit carryforward from an adoption (or

More Than Three Eligible Children

attempted adoption) in a prior year, you must include that

eligible child (or children) in Part I and attach appropriate

If you adopted or tried to adopt more than three eligible

documentation. If you cannot give complete information

children, fill in and attach as many Forms 8839 as you need

about an eligible child you tried to adopt in a prior year

to list them. Also, enter “See Attached” to the right of the

because the adoption was either unsuccessful or was not

Caution below line 1.

final by the end of 2010, complete the entries that you can

For Part II, fill in lines 2 through 6 for each child. But fill in

on line 1. Enter “See Attached” in the columns for which you

lines 7 through 14 on only one Form 8839. The amount on

do not have the information. Then attach one or more of the

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Instructions For Form 8839 - 2010 Page 5

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