Instructions For Form 8839 Draft - Qualified Adoption Expenses

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2010 and 2011 if the adoption became final in 2011, or

IF you file. . .

THEN enter on line 7 the amount from. . .

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2011 if the adoption became final before 2011.

Form 1040

Form 1040, line 38, increased by the total of

any:

Expenses reimbursed by your employer under a

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Exclusion of income from Puerto Rico and

qualified adoption assistance program are not

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Amounts from –

qualified adoption expenses and must not be entered

CAUTION

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Form 2555, lines 45 and 50,

on line 5. See the examples following Employer-Provided

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Form 2555-EZ, line 18, and

Adoption Benefits on page 2.

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Form 4563, line 15.

Special needs adoption. If you adopted a child with

Form 1040NR

Form 1040NR, line 37.

special needs and the adoption became final in 2011, enter

on line 5:

Part III—Employer-Provided

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$13,360, minus

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Any qualified adoption expenses you used to figure any

Adoption Benefits

adoption credit you claimed for the same child in a prior

Line 13

year. This is the amount you entered on line 3 of Form 8839

for this child.

The maximum amount that can be excluded from income for

employer-provided adoption benefits is $13,360 per child. If

If you did not claim any adoption credit for the child in a

you and another person (other than your spouse if filing

prior year, enter $13,360 on line 5 even if your qualified

jointly) each received employer-provided adoption benefits

adoption expenses for the child were less than $13,360 (and

in connection with the adoption of the same eligible child,

even if you did not have any qualified adoption expenses for

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

this child).

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

preprinted entry on line 13 and enter above line 13 your

Unsuccessful adoption. If you paid qualified adoption

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

expenses in an attempt to adopt a child and the attempt was

Line 14

unsuccessful, treat those expenses in the same manner as

expenses you paid for adoptions not final by the end of the

If you received employer-provided adoption benefits in a

year. See Domestic adoptions that have not been finalized

prior year for the same child, enter on line 14 the total of the

under Documentation requirements on page 3.

amounts shown on lines 14, 18, or corresponding lines of

the last Form 8839 you filed for the child.

Example. You paid $3,000 of qualifying adoption

Special rules apply if the prior year benefits were

expenses in 2010 in an attempt to adopt a child. You paid

received in connection with the adoption of a foreign

$2,000 in qualified adoption expenses early in 2011.

child and the adoption became final in 2011. See

However, the adoption attempt was unsuccessful. Enter

CAUTION

Exclusion of prior year benefits on page 5.

$3,000 on line 5. The $2,000 paid in 2011 may qualify in

2012.

Line 18

If the child was a child with special needs and the adoption

Line 7

became final in 2011, enter the amount from line 15 only if

Use the following chart to find your modified adjusted gross

your employer has a qualified adoption assistance program,

income to enter on line 7.

as defined on page 2 under Employer-Provided Adoption

Modified Adjusted Gross Income (AGI) Worksheet—Line 19

Keep for Your Records

Before you begin:

If you file Form 1040, complete lines 8a through 21, 23 through 32, and 36 if they apply.

If you file Form 1040NR, complete lines 9a through 21, 24 through 32, and 35 if they apply.

1. Enter the amount you would enter on line 7 of Form 1040 or line 8 of Form 1040NR if you could exclude the total

amount on Form 8839, line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter the amount from Form 8839, line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Form 1040 filers, enter the total of lines 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, 20b, and 21. Form

1040NR filers, enter the total of lines 9a, 10a, 11 through 15, 16b, 17b, and 18 through 21 . . . . . . . . . . . . . . . .

4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Form 1040 filers, enter the total of lines 23 through 32, and any write-in adjustments entered on the dotted line

next to line 36. Form 1040NR filers, enter the total of lines 24 through 32 and any write-in adjustments entered on

the dotted line next to line 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Form 1040 filers, increase the amount on line 6 above by the total of the following amounts. Enter the total on

Form 8839, line 19.

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Any amount from Form 2555, lines 45 and 50, Form 2555-EZ, line 18, and Form 4563, line 15, and

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Any exclusion of income from Puerto Rico.

Form 1040NR filers, enter on Form 8839, line 19, the amount from line 6 above.

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Form 8839 (2011)