2016 Instructions For Form 8839 (Page 4 of 8) in pdf

on behalf of each child. The adoption assistance agreements

If you filed Form 8839 for a prior year in connection with

entered into between Agency A and the adoptive parents are

this adoption, enter your 2016 information on the same

evidence that State V has determined that Mark, Rachel, and

line (Child 1, Child 2, or Child 3) that you used in the

Janet are children with special needs and may be used to

CAUTION

prior year.

support the adoptive parents' claim to the adoption tax credit.

Mark, Rachel, and Janet are U.S. children who State V has

More Than Three Eligible Children

removed from their biological parents. State V also has

If you adopted or tried to adopt more than three eligible children,

determined that each child has special needs. Their adoptive

fill in and attach as many Forms 8839 as you need to list them.

parents may claim an adoption tax credit for each child, even if

Also, enter “See Attached” to the right of the Caution below

the adoptive parents paid no qualifying adoption expenses, if all

line 1.

other requirements of the credit are met.

Example 2. Michael and Grace are born in State W and are

For Part II, fill in lines 2 through 6 and 10 and 11 for each

members of a sibling group. Their biological mother places the

child. But fill in lines 7 through 9 and 12 through 16 on only one

siblings through a private adoption agency and voluntarily

Form 8839. The amount on line 12 of that Form 8839 should be

surrenders her parental rights. Membership in a sibling group is

the combined total of the amounts on line 11 of all Forms 8839.

a factor that State W may use in determining that a child has

For Part III, fill in lines 17 through 20, 22, 26, and 27 for each

special needs. State W also requires that adoptive parents

child. But fill in lines 21, 23 through 25, 28, and 29 on only one

requesting a state determination of special needs follow certain

Form 8839. The amount on line 21 of that Form 8839 should be

steps and make the request before the adoption is final. Michael

the combined total of the amounts on line 20 of all the Forms

and Grace’s adoptive parents don't make a request or follow the

8839. The amount on line 28 of that form should be the

required steps.

combined total of the amounts on line 27.

Michael and Grace aren't children with special needs

because State W didn't remove them from their biological

Column (c)

mother and didn't make a determination of special needs.

A disabled individual, one who is physically or mentally unable to

Although membership in a sibling group is a factor that State W

care for himself or herself, is an eligible child regardless of his or

may use in making a determination, State W didn't make a

her age at the time of adoption.

determination that either Michael or Grace wouldn't be adopted

unless adoption assistance was provided to the adoptive

Column (d)

parents. However, Michael and Grace’s adoptive parents may

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

claim adoption tax credits for the qualified adoption expenses

statements are true.

they paid in connection with Michael and Grace’s adoption, if all

other requirements of the credit are met.

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

its possessions at the time the adoption effort began (U.S. child).

Example 3. Hannah is born in State X. Her biological

parents place Hannah for adoption through a private adoption

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

agency and voluntarily relinquish their parental rights. Hannah

determined that the child can't or shouldn't be returned to his or

then is adopted. A medical exam performed shortly after

her parents' home.

Hannah's birth shows that Hannah has serious physical

3. The state has determined that the child won't be adopted

disabilities. Hannah isn't a child with special needs because

unless assistance is provided to the adoptive parents. Factors

State X didn't remove her from her biological parents and didn't

used by states to make this determination include:

make a determination of special needs. However, Hannah's

a. The child's ethnic background and age,

adoptive parents may claim the adoption tax credit for the

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

qualified adoption expenses they paid in connection with

group, and

Hannah's adoption, if all other requirements of the credit are

met.

c. Whether the child has a medical condition or a physical,

mental, or emotional handicap.

Example 4. Noah is born in Country Z and is diagnosed with

serious physical and mental disabilities. Noah's adoptive

The state must make a determination that a child has special

parents, who are residents of State Y, adopt Noah in Country Z,

needs before the child is considered to be a child with special

bring him to the United States, and re-adopt him in State Y.

needs. A child having a specific factor or condition isn't enough

Noah isn't a child with special needs because he wasn't a citizen

to establish that the state has made a determination of special

or resident of the United States when the adoption process

needs.

began. Additionally, State Y didn't remove him from the home of

his biological parents and didn't make a determination of special

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

needs. However, Noah's adoptive parents may claim the

adoption of a U.S. child with special needs even if you didn't pay

adoption tax credit for the qualified adoption expenses they paid

any qualified adoption expenses. See

Line 22

and the

in connection with Noah's adoption, if all other requirements of

instructions for

Line

the credit are met.

For more information, see Tax Topic 607 available at

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

has special needs, be sure to keep evidence of the

Example 1. Agency A is the child welfare department of

state's determination in your records.

State V. Mark, Rachel, and Janet, brother and sisters, are U.S.

CAUTION

children residing in State V. When Mark was 10, Rachel 8, and

Column (e)

Janet 6, Agency A removed the children from the home of the

biological parents.

A child is a foreign child if he or she wasn't a citizen or resident of

the United States or its possessions at the time the adoption

After Agency A placed the children in foster care, Agency A

effort began.

determined it would be difficult to place the children for adoption

without providing assistance to the adoptive family because of

Special rules. If you paid qualified adoption expenses in 2016

the ages and sibling relationship of the children. Agency A

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

provided the adoptive parents with monthly subsidy payments

-4-

Form 8839 (2016)

2016 Instructions For Form 8839 Page 4

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