Instructions For Form 8839 - 2010 (Page 6 of 8) in pdf

documents listed on page 4 under Domestic adoptions that

petition, and a complete list of countries that are parties to

have not been finalized.

the Convention.

If you received employer-provided adoption benefits in

You must attach documentation to support your

2010 in connection with the adoption of a foreign child and

claim for the credit carryforward. See Documentation

the adoption did not become final by the end of 2010, you

requirements, earlier.

CAUTION

must include the benefits in the total entered on Form 1040,

Column (c)

line 7, or Form 1040NR, line 8. Also, enter “AB” (adoption

benefits) on the dotted line next to Form 1040, line 7, or

A child is disabled if the child is physically or mentally

Form 1040NR, line 8. If the adoption becomes final in a later

unable to take care of himself or herself.

year, you may be able to exclude the benefits from your

Column (d)

income in that year.

Exclusion of prior year benefits. If you received

A child is a child with special needs if all three of the

employer-provided adoption benefits before 2010 in

following statements are true.

connection with the adoption of a foreign child and the

1. The child was a citizen or resident of the United States

adoption became final in 2010, you may be able to exclude

or its possessions at the time the adoption effort began.

part or all of those benefits from your 2010 income. To find

2. A state (including the District of Columbia) has

out if you can, complete the worksheet on page 5. You also

determined that the child cannot or should not be returned to

must use the worksheet to complete Form 8839, Part III,

his or her parents’ home.

and to figure any taxable benefits to enter on Form 8839,

3. The state has determined that the child will not be

line 27.

adopted unless assistance is provided to the adoptive

parents. Factors used by states to make this determination

If the adoption of more than one eligible foreign child

include:

became final in 2010, complete lines 1 through 3 of the

a. The child’s ethnic background and age,

worksheet on page 5 separately for each foreign child and

b. Whether the child is a member of a minority or sibling

use the combined totals to complete lines 4 through 9 of the

group, and

worksheet.

c. Whether the child has a medical condition or a

If you check the box in column (e), you must also

physical, mental, or emotional handicap.

check the box in column (g), indicating the adoption

You may be able to claim a credit or exclusion for the

was finalized in 2010 or earlier, and attach the

CAUTION

adoption of a child with special needs even if you did not

appropriate documentation.

have any qualified adoption expenses. See line 20 and the

Column (f)

instructions for line 5.

Enter the child’s identifying number. This can be a social

If you check the box in column (d) indicating the child

security number (SSN), an adoption taxpayer identification

has special needs, be sure to attach a copy of the

number (ATIN), or an individual taxpayer identification

state’s determination to Form 8839.

CAUTION

number (ITIN).

Column (e)

Enter the child’s SSN if the child has an SSN or you will

be able to get an SSN in time to file your tax return. Apply

A child is a foreign child if he or she was not a citizen or

for an SSN using Form SS-5.

resident of the United States or its possessions at the time

the adoption effort began.

If you are in the process of adopting a child who is a U.S.

citizen or resident alien but you cannot get an SSN for the

Special rules. If you paid qualified adoption expenses in

child in time to file your return, apply for an ATIN using Form

2010 or any prior year in connection with the adoption of a

W-7A. However, if the child is not a U.S. citizen or resident

foreign child and the adoption became final in 2010, you can

alien, apply instead for an ITIN using Form W-7.

use the total expenses you paid in 2010 and all prior years

in determining the amount to enter on line 5. If you and

Column (g)

another person (other than your spouse if filing jointly) each

paid qualified adoption expenses to adopt the same child,

Check the box in column (g) if the adoption for each child

the total qualified expenses must be divided between the

became final in 2010 or earlier.

two of you. You can divide it in any way you both agree.

Attach the appropriate documentation, listed

If the adoption did not become final by the end of 2010,

beginning on page 4, supporting your claim for a

you cannot take the adoption credit for that child in 2010. If

finalized adoption for each child for whom you

CAUTION

the adoption becomes final in a later year, you may be able

checked this box.

to take a credit for the expenses in that year.

Part II—Adoption Credit

To find out when a foreign adoption is treated as final,

see Rev. Proc. 2005-31, 2005-26 I.R.B. 1374, available at

Line 2

, and Rev. Proc.

2010-31, 2010-40 I.R.B. 413, available at

The maximum adoption credit is $13,170 per child. If you

2010-40_IRB/ar10.html.

and another person (other than your spouse if filing jointly)

each paid qualified adoption expenses to adopt the same

The Hague Convention on Protection of Children and

child, the $13,170 limit must be divided between the two of

Co-operation in Respect of Intercountry Adoption

you. You can divide it in any way you both agree. Cross out

(Hague Adoption Convention) entered into force for

CAUTION

the preprinted entry on line 2 and enter above line 2 your

the United States on April 1, 2008. The Hague Adoption

share of the $13,170 limit for that child.

Convention applies if you adopted a child from a country

that is party to the Hague Adoption Convention and you filed

Line 3

your application and petition (Forms I-800A and I-800) with

the U.S. Citizenship and Immigration Service after March

If you filed Form 8839 for a prior year for the same child,

31, 2008. See

for more information

enter on line 3 the total of the amounts shown on lines 3 and

on the Hague Adoption Convention, the application and

6 of the last form you filed for the child.

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Instructions For Form 8839 - 2010 Page 6

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