Instructions For Form 8839 - Qualified Adoption Expenses

2013

Department of the Treasury

Internal Revenue Service

Instructions for Form 8839

Qualified Adoption Expenses

What's New

Employer-Provided Adoption

Benefits, later) and any of the

following statements are true.

E-file. You can e-file income tax returns that include Form 8839.

1. You received employer-provided adoption benefits in

2013. However, special rules apply for benefits received in

2013 maximum credit. The maximum credit and the exclusion

connection with the adoption of an eligible foreign child. See

for employer-provided benefits are both $12,970 per eligible

Column

(e), later.

child in 2013. This amount begins to phase out if you have

2. You adopted an eligible U.S. child with special needs and

modified adjusted gross income in excess of $194,580 and is

the adoption became final in 2013.

completely phased out for modified adjusted gross income of

$234,580 or more.

3. You received employer-provided adoption benefits in

connection with the adoption of an eligible foreign child in:

General Instructions

a. 2013 or prior years and the adoption became final in

2013, or

Future Developments

b. 2013 and the adoption became final before 2013.

See

Column

(e), later.

For the latest information about developments related to Form

8839 and its instructions, such as legislation enacted after they

For purposes of calculating the adoption credit in Part II,

are published, go to

qualified adoption expenses

(defined later) do not include

Purpose of Form

expenses reimbursed by an employer under a written qualified

adoption assistance program (see

Employer-Provided Adoption

Use Form 8839 to figure your adoption credit and any

Benefits, later). For this reason, you must complete Form 8839,

employer-provided adoption benefits you can exclude from your

Part III, before you can figure the credit, if any, in Part II. But see

income. You can claim both the exclusion and the credit for

Child with special

needs, later.

expenses of adopting an eligible child. For example, depending

You cannot exclude employer-provided adoption

on the cost of the adoption, you may be able to exclude up to

benefits if your employer is an S corporation in which

$12,970 from your income and also be able to claim a credit of

you own more than 2% of the stock or stock with more

up to $12,970. But, you cannot claim both a credit and exclusion

CAUTION

than 2% of the voting power.

for the same expenses. See

Qualified Adoption Expenses

and

Employer-Provided Adoption

Benefits, later.

Income limit. The income limit on the adoption credit or

Adoption credit. Use Form 8839, Part II, to figure the adoption

exclusion is based on modified adjusted gross income (MAGI).

credit you can take on Form 1040, line 53 or Form 1040NR,

For 2013, use the following table to see if the income limit will

line 50. Check box c on that line and enter “8839” in the space

affect your credit or exclusion.

next to box c. You may be able to take this credit in 2013 if any of

the following statements are true.

IF your MAGI is...

THEN the income limit...

1. You paid qualified adoption expenses in connection with

the adoption of an eligible U.S. child (including any expenses

$194,580 or less

will not affect your credit or exclusion.

paid in connection with adopting an eligible U.S. child with

Between $194,581 and $234,579

will reduce your credit or exclusion.

special needs) in:

$234,580 or more

will eliminate your credit or exclusion.

a. 2012 and the adoption was not final at the end of 2012, or

Definitions

b. 2013 and the adoption became final in or before 2013.

2. You adopted an eligible U.S. child with special needs and

the adoption became final in 2013. (In this case, you may be

Eligible Child

able to take the credit even if you did not pay any qualified

An eligible child is:

adoption expenses.)

Any child under age 18. If the child turned 18 during the year,

3. You paid qualified adoption expenses in connection with

the child is an eligible child for the part of the year he or she was

the adoption of an eligible foreign child in:

under age 18.

a. 2013 or prior years and the adoption became final in

Any disabled individual physically or mentally unable to take

2013, or

care of himself or herself.

b. 2013 and the adoption became final before 2013.

If you and another person (other than your spouse if

See

Column

(e), later.

filing jointly) adopted or tried to adopt an eligible U.S.

4. You have a carryforward of an adoption credit from 2012.

child, see

Line 2

(or

Line

17, if applicable), later, before

CAUTION

completing Part II (or Part III).

Income exclusion for employer-provided adoption bene-

fits. Use Form 8839, Part III, to figure the employer-provided

Qualified Adoption Expenses

adoption benefits you can exclude from your income on Form

Qualified adoption expenses are reasonable and necessary

1040, line 7, or Form 1040NR, line 8. You may be able to

expenses directly related to, and for the principal purpose of, the

exclude these benefits from income if your employer had a

legal adoption of an eligible child.

written qualified adoption assistance program (see

Qualified adoption expenses include:

Nov 14, 2013

Cat. No. 23077T

Instructions For Form 8839 - Qualified Adoption Expenses - 2013

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