Instructions For Form 8839 Draft - Qualified Adoption Expenses

Column (c)

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

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

A child is disabled if the child is physically or mentally

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

unable to take care of himself or herself.

income in that year.

Column (d)

Exclusion of prior year benefits. If you received

employer-provided adoption benefits before 2011 in

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

connection with the adoption of a foreign child and the

following statements are true.

adoption became final in 2011, you may be able to exclude

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

part or all of those benefits from your 2011 income. To find

or its possessions at the time the adoption effort began.

out if you can, complete the worksheet on page 4. You also

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

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

determined that the child cannot or should not be returned to

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

his or her parents’ home.

line 25.

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

If the adoption of more than one eligible foreign child

adopted unless assistance is provided to the adoptive

became final in 2011, complete lines 1 through 3 of the

parents. Factors used by states to make this determination

worksheet on page 4 separately for each foreign child and

include:

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

a. The child’s ethnic background and age,

worksheet.

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

group, and

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

c. Whether the child has a medical condition or a

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

physical, mental, or emotional handicap.

was finalized in 2011 or earlier, and attach the

CAUTION

appropriate documentation.

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

Column (f)

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

have any qualified adoption expenses. See line 18 and the

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

instructions for line 5.

security number (SSN), an adoption taxpayer identification

number (ATIN), or an individual taxpayer identification

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

number (ITIN).

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

state’s determination to Form 8839.

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

CAUTION

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

Column (e)

for an SSN using Form SS-5.

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

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

resident of the United States or its possessions at the time

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

the adoption effort began.

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

Special rules. If you paid qualified adoption expenses in

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

2011 or any prior year in connection with the adoption of a

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

foreign child and the adoption became final in 2011, you can

Column (g)

use the total expenses you paid in 2011 and all prior years

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

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

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

became final in 2011 or earlier.

paid qualified adoption expenses to adopt the same child,

Attach the appropriate documentation, listed on page

the total qualified expenses must be divided between the

3, supporting your claim for a finalized adoption for

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

each child for whom you checked this box.

CAUTION

If the adoption did not become final by the end of 2011,

Part II—Adoption Credit

you cannot take the adoption credit for that child in 2011. If

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

Line 2

to take a credit for the expenses in that year.

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

The maximum adoption credit is $13,360 per child. If you

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

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

, and Rev. Proc.

each paid qualified adoption expenses to adopt the same

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

child, the $13,360 limit must be divided between the two of

2010-40_IRB/ar10.html.

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

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

The Hague Convention on Protection of Children and

share of the $13,360 limit for that child.

Co-operation in Respect of Intercountry Adoption

(Hague Adoption Convention) entered into force for

Line 3

CAUTION

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

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

Convention applies if you adopted a child from a country

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

that is party to the Hague Adoption Convention and you filed

6 of the last form you filed for the child.

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

the U.S. Citizenship and Immigration Service after March

Line 5

31, 2008. See

for more information

on the Hague Adoption Convention, the application and

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

Special rules apply if you paid expenses in

the Convention.

connection with the adoption of an eligible foreign

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

CAUTION

If you received employer-provided adoption benefits in

page 6 for details.

2011 in connection with the adoption of a foreign child and

the adoption did not become final by the end of 2011, you

Enter on line 5 the total qualified adoption expenses (as

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

defined on page 2) you paid in:

•

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

2010 if the adoption was not final by the end of 2011,

-5-

Form 8839 (2011)

Instructions For Form 8839 Draft - Qualified Adoption Expenses - 2011 Page 5

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