Instructions For Form 8839 Draft - Qualified Adoption Expenses

Exclusion of Prior Year Benefits Worksheet

(for the adoption of a foreign child that became final in 2011)

Keep for Your Records

1. Enter the total employer-provided adoption benefits you received in 2011 and all prior years for the

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

2. Enter $13,360. If you and another person (other than your spouse if filing jointly) each received

employer-provided adoption benefits in 2011 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 13. If necessary, cross out the preprinted

amount on line 13 and enter the result above the preprinted amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

•

Enter -0- on Form 8839, line 14.

•

Enter the amount from line 3 above on Form 8839, line 15.

•

On Form 8839, line 16, enter the total amount of employer-provided adoption benefits received in 2011

and all prior years. On the dotted line next to line 16, enter “PYAB” and the total amount of benefits you

received before 2011.

•

Complete Form 8839 through line 24. 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 25.

4. Is the amount on your 2011 Form 8839, line 24, less than the amount on Form 8839, line 17?

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

Yes. Subtract Form 8839, line 24 from line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Enter the total employer-provided adoption benefits you received before 2011 included on Form 8839, line

16, 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 25. 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 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Enter the total 2011 employer-provided adoption benefits included on Form 8839, line 16, 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 $13,360 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

$13,360 limit must be divided between the two of you. You can divide it in any way you both agree. Enter your share of the $13,360 limit on

line 2 of the worksheet above.

Attempted Adoptions

More Than Three Eligible Children

If you made more than one attempt to adopt one eligible

If you adopted or tried to adopt more than three eligible

child, combine the amounts you spent and complete only

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

the “Child 1” line. Do not report the additional attempt(s) on

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

the “Child 2” or “Child 3” line. Complete the “Child 2” or

Caution below line 1.

“Child 3” lines only if you adopted or tried to adopt two or

For Part II, fill in lines 2 through 6 and 10 and 11 for each

three eligible children.

child. But fill in lines 7 through 9 and 12 on only one Form

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

8839. The amount on line 12 of that Form 8839 should be

unsuccessful attempt to adopt a child and later successfully

the combined total of the amounts on line 11 of all the

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

Forms 8839.

because you made more than one attempt to adopt one

For Part III, fill in lines 13, 16, 18, 22, and 23 for each

eligible child.

child. But fill in lines 17, 19, 21, 24, and 25 on only one Form

If you filed Form 8839 for a prior year in connection

8839. The amount on line 17 of that Form 8839 should be

with this adoption, enter your 2011 information on

the combined total of the amounts on line 16 of all the

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

Forms 8839. The amount on line 24 of that form should be

CAUTION

used in the prior year.

the combined total of the amounts on line 23.

-4-

Form 8839 (2011)

Instructions For Form 8839 Draft - Qualified Adoption Expenses - 2011 Page 4

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