2015 Instructions For Form 8839 (Page 5 of 8) in pdf

Exclusion of Prior Year Benefits Worksheet

Keep for Your Records

(for the adoption of a foreign child that became final in 2015)

1. Enter the total employer-provided adoption benefits you received in 2015 and all prior years for the adoption of

the foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter $13,400. If you and another person (other than your spouse if filing jointly) each received

employer-provided adoption benefits in 2015 or any prior year to adopt the same child, see the instructions for

line 2 at the end of this worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Enter the smaller of line 1 or line 2 here and on Form 8839, line 17. If necessary, cross out the preprinted

amount on line 17 and enter the result above the preprinted amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter -0- on Form 8839, line 18.

Enter the amount from line 3 of this worksheet on Form 8839, line 19.

On Form 8839, line 20, enter the total amount of employer-provided adoption benefits received in 2015 and

all prior years. On the dotted line next to line 20, enter “PYAB” and the total amount of benefits you received

before 2015.

Complete Form 8839 through line 28. Then, complete lines 4 through 9 of this worksheet to figure the amount

of any prior year benefits you can exclude and the taxable benefits, if any, to enter on Form 8839, line 29.

4. Is the amount on your 2015 Form 8839, line 28, less than the amount on Form 8839, line 21?

No. Skip lines 4 through 6 of this worksheet and go to line 7.

Yes. Subtract Form 8839, line 28 from line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Enter the total employer-provided adoption benefits you received before 2015 included on Form 8839, line 20,

for all children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Taxable benefits. Subtract line 5 of this worksheet from line 4. If zero or less, enter -0-. Enter the result here and

on Form 8839, line 29. If more than zero, also include this amount on line 7 of Form 1040 or line 8 of Form

1040NR, and enter “AB” on the dotted line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Enter the amount from Form 8839, line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Enter the total 2015 employer-provided adoption benefits included on Form 8839, line 20, for all children . . . . .

9. Prior year excluded benefits. Subtract line 8 of this worksheet from line 7. If zero or less, stop; you can't

exclude any of your prior year benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Next. Figure the total you would enter on line 7 of Form 1040 or line 8 of Form 1040NR before you exclude the amount from line 9 of

this worksheet. Then, subtract the amount from line 9 of this worksheet from that total. Enter the result on line 7 of Form 1040 or line 8

of Form 1040NR. On the dotted line next to the line for wages, enter “PYAB” and the amount from line 9 of this worksheet.

Line 2. The maximum amount of employer-provided adoption benefits that can be excluded from income is $13,400 per child. If you and

another person (other than your spouse if filing jointly) each received employer-provided adoption benefits to adopt the same child, the

$13,400 limit must be divided between the two of you. You can divide it in any way you both agree. Enter your share of the $13,400 limit on

line 2 of this worksheet.

total expenses you paid in 2015 and all prior years in

may also be a re-adoption proceeding in the United States,

determining the amount to enter on line 5. If you and another

either in the same year as the foreign adoption or in a later year.

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

Rev. Proc. 2005-31 generally allows taxpayers to choose as the

qualified adoption expenses to adopt the same child, the total

year of finality: (1) the year of the foreign-sending country

qualified expenses must be divided between the two of you. You

adoption proceeding, or (2) the year of the re-adoption, if the

can divide it in any way you both agree.

re-adoption occurs in either the first or second year following the

year of the foreign-country proceeding. The expenses of

If the adoption didn't become final by the end of 2015, you

re-adoption are qualified adoption expenses in the year in which

can't take the adoption credit for that child in 2015.

the expenses are paid, subject to the dollar limitation.

In general, the year of finality of a foreign adoption is

Example. Brian and Susan paid qualified adoption expenses

determined either under Rev. Proc. 2005-31, I.R.B. 2005-31,

of $7,000 in 2012, $8,000 in 2013, and $9,000 in 2014 in

2005-26 1374, available at

connection with the adoption of an eligible foreign child from

ar14.html

(non-Hague adoptions) or under Rev. Proc. 2010-31,

Country X. Country X is a non-Hague country (a country not

2010-41 I.R.B. 413, available at

party to the Hague Adoption Convention). In 2014, Country X

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(Hague adoptions).

issued a final decree of adoption to Brian and Susan, who

Non-Hague adoptions. In most non-Hague adoptions, there

brought the child to the United States on an IR2, IR3, or IR4 visa.

is an adoption proceeding in the foreign country (and the country

In 2015, Brian and Susan paid $1,000 in qualified adoption

isn't a party to the Hague Adoption Convention, discussed later)

expenses in connection with re-adopting the child in their home

before the child is allowed to come to the United States. There

-5-

Form 8839 (2015)

2015 Instructions For Form 8839 Page 5

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