Instructions For Form 8839 2008 (Page 4 of 6) in pdf

Exclusion of Prior Year Benefits Worksheet

(for the adoption of a foreign child that became final in 2008)

Keep for Your Records

1. Did you receive employer-provided adoption benefits before 2002 for the adoption of the foreign child?

❏ No. Skip lines 1 and 2; enter -0- on line 3 and go to line 4.

❏ Yes. Enter the total 1997 through 2001 employer-provided adoption benefits you received for the

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

2. Enter $5,000. If you and another person (other than your spouse if filing jointly) each received

employer-provided adoption benefits after 1996 and before 2002 to adopt the same child, see instructions

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

3. Enter the smaller of line 1 or line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter the total 2002 through 2008 employer-provided adoption benefits you received for the adoption of the

foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Enter $11,650. If you and another person (other than your spouse if filing jointly) each received

employer-provided adoption benefits in 2002 through 2008 to adopt the same child, see instructions below.

7. Enter the smaller of line 5 or line 6 here and on Form 8839, line 19. If necessary, cross out the preprinted

amount on line 19 and enter the result above the preprinted amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

Enter -0- on Form 8839, line 20.

•

Enter the amount from line 7 above on Form 8839, line 21.

•

On Form 8839, line 22, enter the total amount of employer-provided adoption benefits received in 1997

through 2008. On the dotted line next to line 22, enter “PYAB” and the total amount of benefits you received

in 1997 through 2007.

•

Complete Form 8839 through line 30. Then, complete lines 8 through 13 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 31.

8. Is the amount on your 2008 Form 8839, line 30, less than the amount on Form 8839, line 23?

❏ No. Skip lines 8 through 10 and go to line 11.

❏ Yes. Subtract line 30 from line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Enter the total 1997 through 2007 employer-provided adoption benefits included on Form 8839, line 22, for

all children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Taxable benefits. Subtract line 9 from line 8. If zero or less, enter -0-. Enter the result here and on Form

8839, line 31. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Enter the amount from Form 8839, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Enter the total 2008 employer-provided adoption benefits included on Form 8839, line 22, for all children . . . 12.

13. Prior year excluded benefits. Subtract line 12 from line 11. If zero or less, stop; you cannot exclude any of

your prior year benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

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 13 above. Then, subtract the amount from line 13 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 13 above.

Worksheet Instructions

Line 2. The maximum amount of employer-provided adoption benefits received after 1996 and before 2002 that can be excluded

from income is $5,000 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 $5,000 limit must be divided between the two of you. You can divide it in any way you

both agree. Enter your share of the $5,000 limit on line 2 of the worksheet above.

Line 6. The maximum amount of employer-provided adoption benefits that can be excluded from income is $11,650 per child

(including up to $5,000 of benefits received after 1996 and before 2002). If you and another person (other than your spouse if filing

jointly) each received employer-provided adoption benefits to adopt the same child, the $11,650 limit must be divided between the

two of you. You can divide it in any way you both agree. Enter your share of the $11,650 limit on line 6 of the worksheet above.

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Instructions For Form 8839 2008 Page 4

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