Draft Instructions For Form 8839 - Qualified Adoption Expenses

Line 5

on the Hague Adoption Convention, the application and

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

the Convention.

Special rules apply if you paid expenses in

connection with the adoption of an eligible foreign

If you received employer-provided adoption benefits in

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

2010 in connection with the adoption of a foreign child and

CAUTION

page 4 for details.

the adoption did not become final by the end of 2010, you

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

Enter on line 5 the total qualified adoption expenses (as

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

defined on page 1) you paid in:

•

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

2009 if the adoption was not final by the end of 2010,

•

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

2009 and 2010 if the adoption became final in 2010, or

•

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

2010 if the adoption became final before 2010.

income in that year.

Special needs adoption. If you adopted a child with

Exclusion of prior year benefits. If you received

special needs and the adoption became final in 2010, enter

employer-provided adoption benefits before 2010 in

on line 5:

•

connection with the adoption of a foreign child and the

$13,170, minus

•

adoption became final in 2010, you may be able to exclude

Any qualified adoption expenses you used to figure any

part or all of those benefits from your 2010 income. To find

adoption credit you claimed for the same child in a prior

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

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

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

for this child.

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

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

line 27.

prior year, enter $13,170 on line 5 even if your qualified

adoption expenses for the child were less than $13,170 (and

If the adoption of more than one foreign child became

even if you did not have any qualified adoption expenses for

final in 2010, complete lines 1 through 3 of the worksheet on

this child).

page 4 separately for each foreign child and use the

combined totals to complete lines 4 through 9 of the

Unsuccessful adoption. If you paid qualified adoption

worksheet.

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

unsuccessful, treat those expenses in the same manner as

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

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

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

year.

was finalized in 2010 or earlier, and attach the

CAUTION

Example. You paid $3,000 of qualifying adoption

appropriate documentation.

expenses in 2009 in an attempt to adopt a child. You paid

Column (f)

$2,000 in qualified adoption expenses early in 2010.

However, the adoption attempt is unsuccessful. Enter

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

$3,000 on line 5. The $2,000 paid in 2010 may qualify in

security number (SSN), an adoption taxpayer identification

2011.

number (ATIN), or an individual taxpayer identification

number (ITIN).

Line 8

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

Use the following chart to find your modified adjusted gross

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

income to enter on line 8.

for an SSN using Form SS-5.

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

IF you file. . .

THEN enter on line 8 the amount from. . .

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

Form 1040

Form 1040, line 38, increased by the total of

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

any:

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

•

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

Exclusion of income from Puerto Rico and

•

Amounts from –

Column (g)

•

Form 2555, lines 45 and 50,

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

•

Form 2555-EZ, line 18, and

became final in 2010 or earlier.

•

Form 4563, line 15.

Attach the appropriate documentation, listed

Form 1040NR

Form 1040NR, line 37.

beginning on pg. 3, supporting your claim for a

finalized adoption for each child for whom you

CAUTION

Line 13—Credit Carryforward

checked this box.

If you filed Form 8839 in a previous year and have an

Part II—Adoption Credit

unused credit carryforward from 2009, that amount can be

Line 2

found on line 23 of your credit carryforward worksheet on

page 5 of the 2009 Instructions for Form 8839.

The maximum adoption credit is $13,170 per child. If you

You must attach the appropriate documentation

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

required, listed on page 3 of these instructions, to

each paid qualified adoption expenses to adopt the same

support your claim for a credit carryforward.

child, the $13,170 limit must be divided between the two of

CAUTION

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

Part III—Employer-Provided

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

share of the $13,170 limit for that child.

Adoption Benefits

Line 3

Line 15

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

The maximum amount that can be excluded from income for

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

employer-provided adoption benefits is $13,170 per child. If

6 of the last form you filed for the child.

you and another person (other than your spouse if filing

-5-

Draft Instructions For Form 8839 - Qualified Adoption Expenses - 2010 Page 5

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