Instructions For Form 8839 Draft - 2009 (Page 2 of 6) in pdf

Employer-provided adoption benefits should be shown in

Children with special needs. If you adopt a child with

box 12 of your Form(s) W-2 with code T. Your salary may

special needs you can claim $12,150 (minus any qualified

have been reduced to pay these benefits. You may also be

adoption expenses claimed for the same child in a prior

able to exclude amounts not shown in box 12 of your Form

year) in the year the adoption becomes final even if you did

W-2 if all of the following apply.

not have any qualified adoption expenses. See the

•

instructions for line 1, column (d) for more information.

You adopted a child with special needs. See the

instructions for line 1, column (d), on page 3 for the

Foreign child. If the eligible child is not a U.S. citizen or

definition of a child with special needs.

resident, you cannot take the adoption credit or exclusion

•

The adoption became final in 2009.

unless the adoption becomes final. Take the credit or

•

Your employer had a qualified adoption assistance

exclusion as shown on the following tables.

program as described on page 1.

IF you pay

Who Can Take the Adoption Credit or

qualifying expenses in...

THEN take the credit in...

Any year before the year the

The year the adoption

Exclude Employer-Provided Adoption

adoption becomes final

becomes final.

Benefits?

The year the adoption becomes

The year the adoption

You may be able to take the credit or exclusion if all three of

final

becomes final.

the following statements are true.

Any year after the year the adoption The year of the payment.

1. Your filing status is single, head of household,

becomes final

qualifying widow(er), or married filing jointly. If your filing

status is married filing separately, see Married Persons

IF your employer pays for

Filing Separate Returns below.

qualifying expenses under an

THEN take the

2. Your modified AGI is less than $222,180 or you have

adoption assistance program in... exclusion in....

a carryforward of an adoption credit from a prior year. To

figure your modified AGI, see the instructions for line 8 on

Any year before the year the

The year the adoption

page 5 (for the credit) or line 26 on page 6 (for the

adoption becomes final

becomes final.

exclusion).

The year the adoption becomes

The year the adoption

3. You report the required information about the eligible

final

becomes final.

child in Part l.

Any year after the year the adoption The year of the payment.

becomes final

Married Persons Filing Separate Returns

You may be able to take the credit or exclusion if all of the

If your employer makes adoption assistance payments in

following apply.

•

a year before the adoption of a foreign child is final, you

Statements (2) and (3) above under Who Can Take the

must include the payments in your income in the year of the

Adoption Credit or Exclude Employer-Provided Adoption

payment. Then, on your return for the year the adoption

Benefits are true.

becomes final, you can make an adjustment to take the

•

You lived apart from your spouse during the last 6 months

exclusion.

of 2009.

•

The eligible child lived in your home more than half of

Your employer is not required to withhold income tax

2009.

on payments for qualifying expenses under an

•

You provided over half the cost of keeping up your home.

adoption assistance program. If you must include the

CAUTION

payments in income in the year paid because your adoption

of a foreign child is not final, your withholding may not be

When To Take the Credit or Exclusion

enough to cover the tax on those payments. You may need

When you can take the adoption credit or exclusion depends

to give your employer a new Form W-4 to adjust your

on whether the eligible child is a citizen or resident of the

withholding, or make estimated tax payments, to avoid a

United States (including U.S. possessions) at the time the

penalty for underpayment of estimated tax.

adoption effort begins.

When the adoption is final. Under the Hague Adoption

Convention (Convention), every child adopted from a

Child who is a U.S. citizen or resident. If the eligible child

Convention country receives from the U.S. Secretary of

is a U.S. citizen or resident, you can take the adoption credit

State either a Hague Adoption Certificate (HAC) or a Hague

or exclusion even if the adoption never became final. Take

Custody Declaration (HCD). If the adoption is finalized in the

the credit or exclusion as shown in the following tables.

Convention country (an HAC is issued), the adoption is final

in the taxable year for which the Secretary of State certifies

IF you pay

the adoption as final. If custody is granted to the adoptive

qualifying expenses in...

THEN take the credit in...

parent(s) by the Convention country (an HCD is issued), the

Any year before the year the

The year after the year

adoption is final in the year in which the adoptive parent(s)’

adoption becomes final

of the payment.

state court of residence enters a final decree of adoption.

The Convention only applies if you adopt a child from a

The year the adoption becomes

The year the adoption

country that is party to the Convention and you filed your

final

becomes final.

application and petition (Forms I-800A and I-800) after

Any year after the year the adoption The year of the payment.

March 31, 2008. The Convention does not apply to adoption

becomes final

applications or petitions (Form I-600A and I-600) filed before

April 1, 2008, even if you adopt a child from a country that is

party to the Convention. For a complete list of countries that

IF your employer pays for

are parties to the Convention, see

qualifying expenses under an

THEN take the

adoption assistance program in... exclusion in....

For more information on when a foreign adoption is

Any year

The year of the payment.

treated as final for non-Convention adoptions, see Rev.

-2-

Instructions For Form 8839 Draft - 2009 Page 2

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