2016 Instructions For Form 8839 (Page 6 of 8) in pdf

Part II—Adoption Credit

one that is a party to the Hague Adoption Convention, discussed

later) before the child is allowed to come to the United States.

Line 2

Rev. Proc. 2010-31 generally allows taxpayers to choose as the

year of finality: (1) the year in which the sending country enters a

The maximum adoption credit is $13,460 per child. If you and

final decree of adoption, or (2) the year in which the U.S.

another person (other than your spouse if filing jointly) each paid

Secretary of State issues a certificate under section 301(a) of the

qualified adoption expenses to adopt the same child, the

Intercountry Adoption Act of 2000, 42 U.S.C. sections 14901 -

$13,460 limit must be divided between the two of you. You can

14954.

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

Custodial agreements followed by adoption in the United

entry on line 2 and enter above line 2 your share of the $13,460

States. In a few cases, the sending country may allow the child

limit for that child.

to come to the United States under a custodial agreement. If so,

Line 3

the child will be adopted later in a state court in the United

States. Both Rev. Proc. 2005-31 and Rev. Proc. 2010-31 allow

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

the adoptive parent(s) to treat the year of the state-court

line 3 the total of the amounts shown on lines 3 and 6 (or

adoption as the year of finality.

corresponding line) of the last form you filed for the child.

The Hague Convention on Protection of Children and

Line 5

Co-operation in Respect of Intercountry Adoption

(Hague Adoption Convention) entered into force for the

Special rules apply if you paid expenses in connection

CAUTION

United States on April 1, 2008. The Hague Adoption Convention

with the adoption of an eligible foreign child. See

applies if you adopted a child from a country that is party to the

Column

(e), for details.

Hague Adoption Convention and you filed your application and

CAUTION

petition (Forms I-800A and I-800) with the U.S. Citizenship and

Enter on line 5 the total qualified adoption expenses (as

Immigration Service after March 31, 2008. See

defined earlier) you paid in:

for more information on the Hague

2015 if the adoption wasn't final by the end of 2016,

Adoption Convention, the application and petition, and a

2015 and 2016 if the adoption became final in 2016, or

complete list of countries that are parties to the Convention.

2016 if the adoption became final before 2016.

Expenses reimbursed by your employer under a written

If you received employer-provided adoption benefits in 2016

qualified adoption assistance program aren't qualified

in connection with the adoption of a foreign child and the

adoption expenses and must not be entered on line 5.

adoption didn't become final by the end of 2016, you must

CAUTION

See the examples following

Employer-Provided Adoption

include the benefits in the total entered on Form 1040, line 7, or

Benefits.

Form 1040NR, line 8. Also, enter “AB” on the dotted line next to

Form 1040, line 7, or Form 1040NR, line 8.

Special needs adoption. If you adopted a U.S. child with

Exclusion of prior year benefits. If you received

special needs and the adoption became final in 2016, enter on

employer-provided adoption benefits before 2016 in connection

line 5:

with the adoption of a foreign child and the adoption became

$13,460, minus

final in 2016, you may be able to exclude part or all of those

Any qualified adoption expenses you used to figure any

benefits from your 2016 income. To find out if you can, complete

adoption credit you claimed for the same child in a prior year.

the

Exclusion of Prior Year Benefits Worksheet

. You also must

This is the amount you entered on line 3 of Form 8839 for this

use that worksheet to complete Form 8839, Part III, and to figure

child.

any taxable benefits to enter on Form 8839, line 29.

If you didn't claim any adoption credit for the child in a prior

If the adoption of more than one eligible foreign child became

year, enter $13,460 on line 5 even if your qualified adoption

final in 2016, complete lines 1 through 3 of the Exclusion of Prior

expenses for the child were less than $13,460 (and even if you

Year Benefits Worksheet separately for each foreign child and

didn't have any qualified adoption expenses for this child).

use the combined totals to complete lines 4 through 9 of the

worksheet.

Unsuccessful adoption. If you paid qualified adoption

expenses in an attempt to adopt a U.S. child and the attempt

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

was unsuccessful, treat those expenses in the same manner as

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

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

finalized in 2016 or earlier.

CAUTION

Example. You paid $3,000 of qualified adoption expenses in

2015 in an attempt to adopt a U.S. child. You paid $2,000 in

Column (f)

qualified adoption expenses early in 2016. However, the

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

adoption attempt was unsuccessful. Enter $3,000 on line 5. The

number (SSN), an adoption taxpayer identification number

$2,000 paid in 2016 may qualify in 2017.

(ATIN), or an individual taxpayer identification number (ITIN).

Line 7

Enter the child's SSN if the child has an SSN or you will be

Use the following chart to find your modified adjusted gross

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

income to enter on line 7.

SSN using Form SS-5.

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

citizen or resident alien but you can't get an SSN for the child in

time to file your return, apply for an ATIN using Form W-7A.

However, if the child isn't a U.S. citizen or resident alien, apply

instead for an ITIN using Form W-7.

Column (g)

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

became final in 2016 or earlier.

-6-

Form 8839 (2016)

2016 Instructions For Form 8839 Page 6

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