U.S. Individual Income Tax Return

2012

Instructions for Form 8839

Department of the Treasury
Internal Revenue Service

Qualified Adoption Expenses

What's New
Credit is nonrefundable. For 2012, the adoption credit is
nonrefundable. A nonrefundable credit is subtracted from your
tax. It may reduce your tax to zero. If the credit is more than your
tax, the excess is not refunded to you.
Paper filing required. If you are filing Form 8839, you cannot
file your income tax return and Form 8839 electronically. You
must file a paper return. Mail your return to the address listed in
your tax return instructions.
Documentation requirements. You should keep
documentation that supports your claim for the adoption credit,
but you no longer need to include any documentation when you
file your tax return.
2012 maximum credit. The maximum credit and the exclusion
for employer-provided benefits are both $12,650 per eligible
child in 2012. This amount begins to phase out if you have
modified adjusted gross income in excess of $189,710 and is
completely phased out for modified adjusted gross income of
$229,710 or more.
Because the adoption credit is not refundable after
2011, you may be able to carryforward any unused
credit amounts to future tax years. The 2013 Form 8839
and its instructions will have information on the credit
carryforward.

TIP

General Instructions
Future Developments

For the latest information about developments related to Form
8839 and its instructions, such as legislation enacted after they
are published, go to www.irs.gov/form8839.

Frequently asked questions. Answers to frequently asked
questions about adoption benefits are available at www.irs.gov/
individuals/article/0,,id=231663,00.html.

Purpose of Form

Use Form 8839 to figure your adoption credit and any
employer-provided adoption benefits you can exclude from your
income. You can claim both the exclusion and the credit for
expenses of adopting an eligible child. For example, depending
on the cost of the adoption, you may be able to exclude up to
$12,650 from your income and also be able to claim a credit of
up to $12,650. But, you cannot claim both a credit and exclusion
for the same expenses. See Qualified Adoption Expenses and
Employer-Provided Adoption Benefits, later.
Adoption credit. Use Form 8839, Part II, to figure the adoption
credit you can take on Form 1040, line 53 or Form 1040NR,
line 50. Check box c on that line and enter “8839” in the space
next to box c. You may be able to take this credit in 2012 if any of
the following statements are true.
1. You paid qualified adoption expenses in connection with
the adoption of an eligible U.S. child (including any expenses
paid in connection with adopting an eligible U.S. child with
special needs) in:
a. 2011 and the adoption was not final at the end of 2011, or
Jan 14, 2013

b. 2012 and the adoption became final in or before 2012.
2. You adopted an eligible U.S. child with special needs and
the adoption became final in 2012. (In this case, you may be
able to take the credit even if you did not pay any qualified
adoption expenses.)
3. You paid qualified adoption expenses in connection with
the adoption of an eligible foreign child in:
a. 2012 or prior years and the adoption became final in
2012, or
b. 2012 and the adoption became final before 2012.
See Column (e), later.
Income exclusion for employer-provided adoption benefits. Use Form 8839, Part III, to figure the employer-provided
adoption benefits you can exclude from your income on Form
1040, line 7, or Form 1040NR, line 8. You may be able to
exclude these benefits from income if your employer had a
written qualified adoption assistance program (see
Employer-Provided Adoption Benefits, later) and any of the
following statements are true.
1. You received employer-provided adoption benefits in
2012. However, special rules apply for benefits received in
connection with the adoption of an eligible foreign child. See
Column (e), later.
2. You adopted an eligible U.S. child with special needs and
the adoption became final in 2012.
3. You received employer-provided adoption benefits in
connection with the adoption of an eligible foreign child in:
a. 2012 or prior years and the adoption became final in
2012, or
b. 2012 and the adoption became final before 2012.
See Column (e), later.
For purposes of calculating the adoption credit in Part II,
qualified adoption expenses (defined later) do not include
expenses reimbursed by an employer under a written qualified
adoption assistance program (see Employer-Provided Adoption
Benefits, later). For this reason, you must complete Form 8839,
Part III, before you can figure the credit, if any, in Part II. But see
Child with special needs, later.
You cannot exclude employer-provided adoption
benefits if your employer is an S corporation in which
CAUTION
you own more than 2% of the stock or stock with more
than 2% of the voting power.

!

Income limit. The income limit on the adoption credit or
exclusion is based on modified adjusted gross income (MAGI).
For 2012, use the following table to see if the income limit will
affect your credit or exclusion.
IF your MAGI is...

THEN the income limit...

$189,710 or less

will not affect your credit or exclusion.

Between $189,711 and $229,709

will reduce your credit or exclusion.

$229,710 or more

will eliminate your credit or exclusion.

Cat. No. 23077T

Definitions

the employer reimbursement, $4,000 of her expenses no longer
meet the definition of qualified adoption expenses. As a result,
Madelyn's maximum adoption credit is limited to $6,000
($10,000 – $4,000).

Eligible Child

An eligible child is:
Any child under age 18. If the child turned 18 during the year,
the child is an eligible child for the part of the year he or she was
under age 18.
Any disabled individual physically or mentally unable to take
care of himself or herself.

Example 2. Haylee paid $20,000 in qualified adoption
expenses for the adoption of an eligible child, including $8,000
of legal fees. Under a qualified adoption assistance program,
Haylee's employer reimbursed the $8,000 of legal fees. Haylee
may exclude the $8,000 employer reimbursement from her
income. However, because of the employer reimbursement,
$8,000 of Haylee's expenses no longer meet the definition of
qualified adoption expenses. As a result, Haylee's maximum
adoption credit is limited to $12,000 ($20,000 - $8,000).

If you and another person (other than your spouse if
filing jointly) adopted or tried to adopt an eligible U.S.
CAUTION
child, see Line 2 (or Line 13, if applicable), later, before
completing Part II (or Part III).

!

Example 3. The facts are the same as in Example 2 except
that instead of reimbursing Haylee for her legal fees, the
employer directly paid the $8,000 to the law firm. The employer's
payment of the legal fees produces the same result as the
employer's reimbursement of the legal fees in Example 2
($8,000 exclusion and $12,000 credit).

Qualified Adoption Expenses

Qualified adoption expenses are reasonable and necessary
expenses directly related to, and for the principal purpose of, the
legal adoption of an eligible child.

Example 4. Paul paid $30,000 in qualified adoption
expenses to adopt an eligible foreign child, and the adoption
became final in 2012. Under a qualified adoption assistance
program, Paul's employer reimbursed him for $12,650 of those
expenses. Paul may exclude the $12,650 reimbursement from
his income. The remaining $17,350 of expenses ($30,000 –
$12,650) continue to be qualified adoption expenses that are
eligible for the credit. However, Paul's credit is dollar-limited to
$12,650. The remaining $4,700 ($30,000 – $12,650 – $12,650)
may never be claimed as a credit or excluded from gross
income.

Qualified adoption expenses include:
Adoption fees,
Attorney fees,
Court costs,
Travel expenses (including meals and lodging) while away
from home, and
Re-adoption expenses relating to the adoption of a foreign
child.
Qualified adoption expenses do not include expenses:
For which you received funds under any state, local, or federal
program,
That violate state or federal law,
For carrying out a surrogate parenting arrangement,
For the adoption of your spouse's child,
Paid or reimbursed by your employer or any other person or
organization, or
Allowed as a credit or deduction under any other provision of
federal income tax law.

Who Can Take the Adoption Credit or
Exclude Employer-Provided Adoption
Benefits?

You may be able to take the credit or exclusion if all three of the
following statements are true.
1. Your filing status is single, head of household, qualifying
widow(er), or married filing jointly. Generally, if you are married,
you must file a joint return to take the credit or exclusion.
However, if you are married and are not filing jointly, you may be
able to take the credit or exclusion on your own return if you are
considered unmarried because you are legally separated or
living apart from your spouse and you meet certain other
requirements. See Married Persons Not Filing Jointly, later.
2. Your modified adjusted gross income (MAGI) is less than
$229,710. To figure your MAGI, see Line 7 (for the credit) or
Line 19 (for the exclusion), later.
3. You report the required information about the eligible
child in Part l.

Employer-Provided Adoption Benefits

In most cases, employer-provided adoption benefits are
amounts your employer paid directly to either you or a third party
for qualified adoption expenses under a qualified adoption
assistance program. But see Child with special needs, later.
A qualified adoption assistance program is a separate written
plan set up by an employer to provide adoption assistance to its
employees. For more details, see Pub. 15-B, Employer's Tax
Guide to Fringe Benefits.
Employer-provided adoption benefits should be shown in
box 12 of your Form(s) W-2 with code T. Your salary may have
been reduced to pay these benefits. You may also be able to
exclude amounts not shown in box 12 of your Form W-2 if all of
the following apply.
You adopted a child with special needs. See Column (d),
later, for the definition of a child with special needs.
The adoption became final in 2012.
Your employer had a written qualified adoption assistance
program as described earlier.

Married Persons Not Filing Jointly

You may be able to take the credit or exclusion if all of the
following apply.
Statements (2) and (3) earlier under Who Can Take the
Adoption Credit or Exclude Employer-Provided Adoption
Benefits are true.
You lived apart from your spouse during the last 6 months of
2012.
The eligible child lived in your home more than half of 2012.
You provided over half the cost of keeping up your home.

The following examples help illustrate how qualified adoption
expenses and employer-provided adoption benefits apply to the
maximum adoption credit allowed.

When To Take the Credit or Exclusion

Example 1. Madelyn paid $10,000 in qualified adoption
expenses for the adoption of an eligible child. Under a qualified
adoption assistance program, Madelyn's employer reimbursed
her for $4,000 of those expenses. Madelyn may exclude the
$4,000 reimbursement from her income. However, because of

When you can take the adoption credit or exclusion depends on
whether the eligible child is a citizen or resident of the United

-2-

Form 8839 (2012)

2005-26 I.R.B. 1374, available at www.irs.gov/irb/2005-26_IRB/
ar14.html, and Rev. Proc. 2010-31, 2010-40 I.R.B. 413,
available at www.irs.gov/irb/2010-40_IRB/ar10.html.
If your employer makes adoption assistance payments in a
year before the adoption of a foreign child is final, you must
include the payments in your income in the year of the payment.
Then, on your return for the year the adoption becomes final, you
can make an adjustment to take the exclusion.

States (including U.S. possessions) at the time the adoption
effort began (domestic adoption).
Child who is a U.S. citizen or resident (U.S. child). If the
eligible child is a U.S. citizen or resident, you can take the
adoption credit or exclusion even if the adoption never became
final. Take the credit or exclusion as shown in the following
tables.

Your employer is not required to withhold income tax on
payments for qualifying expenses under an adoption
CAUTION
assistance program. If you must include the payments
in income in the year paid because your adoption of a foreign
child is not final, your withholding may not be enough to cover
the tax on those payments. You may need to give your employer
a new Form W-4 to adjust your withholding or make estimated
tax payments to avoid a penalty for underpayment of estimated
tax.

Domestic Adoption
IF you pay
qualifying expenses in...

THEN take the credit in...

Any year before the year the
adoption becomes final

The year after the year
of the payment.

!

The year the adoption becomes final The year the adoption
becomes final.
Any year after the year the adoption
becomes final

The year of the payment.

IF your employer pays for
qualifying expenses under an
adoption assistance program
in...

THEN take the
exclusion in....

Any year

The year of the payment.

Specific Instructions
Part I—Information About Your
Eligible Child or Children
Line 1

Complete all columns that apply to the eligible child you adopted
or tried to adopt. If you do not give correct or complete
information your credit and any exclusion may be disallowed.

Child with special needs. If you adopt a U.S. child with special
needs, you may be able to exclude up to $12,650 and claim a
credit for additional expenses up to $12,650 (minus any qualified
adoption expenses claimed for the same child in a prior year).
The exclusion may be available, even if you or your employer did
not pay any qualified adoption expenses, provided the employer
has a written qualified adoption assistance program. See
Column (d), later, for more information.

For examples of the type of records you may want to
keep to substantiate your claim for the adoption credit,
see Notice 2010-66, 2010-42 I.R.B. 437 available at
www.irs.gov/irb/2010-42_IRB/ar09.html.

TIP

Attempted Adoptions of U.S. Children

Foreign child. If the eligible child is a foreign child, you cannot
take the adoption credit or exclusion unless the adoption
becomes final. A child is a foreign child if he or she was not a
citizen or resident of the United States (including U.S.
possessions) at the time the adoption effort began. Take the
credit or exclusion as shown on the following tables.

In general, the dollar limitation requires you to combine the
qualified adoption expenses you paid if you made more than one
attempt to adopt one eligible U.S. child. When you combine the
amounts you spent, complete only the “Child 1” line. Do not
report the additional attempt(s) on the “Child 2” or “Child 3” line.
Complete the “Child 2” or “Child 3” lines only if you adopted or
tried to adopt two or three eligible children.

Foreign Adoption
IF you pay
qualifying expenses in...

THEN take the credit in...

Any year before the year the
adoption becomes final

The year the adoption
becomes final.

Example 1. You planned to adopt one U.S. child. You paid
$10,000 of qualified adoption expenses in an unsuccessful
attempt to adopt a child. You later paid $8,000 of additional
qualified adoption expenses in a successful adoption of a
different child. Complete only the “Child 1” line because you
made more than one attempt to adopt one eligible child.

The year the adoption becomes final The year the adoption
becomes final.
Any year after the year the adoption
becomes final

Example 2. The facts are the same as in Example 1 except
that both attempts are unsuccessful and no adoption is ever
finalized. Enter $18,000 ($10,000 + $8,000) on the “Child 1” line
because you made more than one attempt to adopt one eligible
child.

The year of the payment.

IF your employer pays for
qualifying expenses under an
adoption assistance program
in...

THEN take the
exclusion in....

Any year before the year the
adoption becomes final

The year the adoption
becomes final.

Example 3. You planned to adopt one U.S. child. You paid
$9,000 in qualified adoption expenses in an unsuccessful
attempt to adopt a child. You later successfully adopted twins,
after paying an additional $24,000 in qualified adoption
expenses ($12,000 per child). Enter $21,000 ($9,000 + $12,000)
on the “Child 1” line because you made more than one attempt
to adopt one eligible child. Enter $12,000 on the “Child 2” line
because you made a successful attempt to adopt a second
eligible child.

The year the adoption becomes final The year the adoption
becomes final.
Any year after the year the adoption
becomes final

The year of the payment.

For more information, see Column (e) later. To find out when
a foreign adoption is treated as final, see Rev. Proc. 2005-31,
Form 8839 (2012)

-3-

Because State W has determined that Mark, Rachel, and
Janet are children with special needs, their adoptive parents
may claim an adoption tax credit for each child, even if the
adoptive parents paid no qualifying adoption expenses, if all
other requirements of the credit are met.

If you filed Form 8839 for a prior year in connection with
this adoption, enter your 2012 information on the same
CAUTION
line (Child 1, Child 2, or Child 3) that you used in the
prior year.

!

More Than Three Eligible Children

Example 2. Hannah is born in State X. Her biological
parents place Hannah for adoption through a private adoption
agency and voluntarily relinquish their parental rights. Hannah
then is adopted. A medical exam performed shortly after
Hannah's birth establishes that Hannah has serious physical
disabilities. Hannah is not a child with special needs for
purposes of the adoption tax credit because State X has neither
removed her from her biological parents nor made a
determination that Hannah has special needs. However,
Hannah's adoptive parents may claim the adoption tax credit for
the qualified adoption expenses they paid in connection with
Hannah's adoption, if all other requirements of the credit are
met.

If you adopted or tried to adopt more than three eligible children,
fill in and attach as many Forms 8839 as you need to list them.
Also, enter “See Attached” to the right of the Caution below
line 1.
For Part II, fill in lines 2 through 6 and 10 and 11 for each
child. But fill in lines 7 through 9 and 12 on only one Form 8839.
The amount on line 1 of the Credit Limit Worksheet in these
instructions should be the combined total of the amounts on
line 11 of all the Forms 8839.
For Part III, fill in lines 13 through 16, 18, 22, and 23 for each
child. But fill in lines 17, 19 through 21, 24, and 25 on only one
Form 8839. The amount on line 17 of that Form 8839 should be
the combined total of the amounts on line 16 of all the Forms
8839. The amount on line 24 of that form should be the
combined total of the amounts on line 23.

Example 3. Noah is born in Country Z and is diagnosed with
serious physical and mental disabilities. Noah's adoptive
parents, who are residents of State Y, adopt Noah in Country Z,
bring him to the United States, and re-adopt him in State Y.
Noah is not a child with special needs for purposes of the
adoption tax credit because he was not a citizen or resident of
the United States when the adoption process began and
because State Y neither removed him from the home of his
biological parents nor made a determination that Noah has
special needs. However, Noah's adoptive parents may claim the
adoption tax credit for the qualified adoption expenses they paid
in connection with Noah's adoption, if all other requirements of
the credit are met.

Column (c)

A disabled individual, one who is physically or mentally unable to
care for himself or herself, is an eligible child regardless of his or
her age at the time of adoption.

Column (d)

A child is a child with special needs if all three of the following
statements are true.
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).
2. A state (including the District of Columbia) has
determined that the child cannot or should not be returned to his
or her parents' home.
3. The state has determined that the child will not be
adopted unless assistance is provided to the adoptive parents.
Factors used by states to make this determination include:
a. The child's ethnic background and age,
b. Whether the child is a member of a minority or sibling
group, and
c. Whether the child has a medical condition or a physical,
mental, or emotional handicap.

!

CAUTION

If you check the box in column (d) indicating the child
has special needs, be sure to keep evidence of the
state's determination in your records.

For information and examples on a state determination of
special needs, see frequently asked questions on adoption
benefits at www.irs.gov/individuals/article/0,,id=231663,00.html.

Column (e)

A child is a foreign child if he or she was not a citizen or resident
of the United States or its possessions at the time the adoption
effort began.

Special rules. If you paid qualified adoption expenses in 2012
or any prior year in connection with the adoption of a foreign
child and the adoption became final in 2012, you can use the
total expenses you paid in 2012 and all prior years in
determining the amount to enter on line 5. If you and another
person (other than your spouse if filing jointly) each paid
qualified adoption expenses to adopt the same child, the total
qualified expenses must be divided between the two of you. You
can divide it in any way you both agree.
If the adoption did not become final by the end of 2012, you
cannot take the adoption credit for that child in 2012.
In general, the year of finality of a foreign adoption is
determined either under Rev. Proc. 2005-31, I.R.B. 2005-31,
2005-26 1374, available at www.irs.gov/irb/2005-26_IRB/
ar14.html (non-Hague adoptions) or under Rev. Proc. 2010-31,
2010-41 I.R.B. 413, available at www.irs.gov/irb/2010-40_IRB/
ar10.html (Hague adoptions).
Non-Hague adoptions. In most non-Hague adoptions, there
is an adoption proceeding in the foreign country (and the country
is one that is not a party to the Hague Adoption Convention,
discussed later) before the child is permitted to come to the
United States. There may also be a re-adoption proceeding in
the United States, either in the same year as the foreign
adoption or in a later year. Rev. Proc. 2005-31 generally allows

You may be able to claim an exclusion or credit for the
adoption of a U.S. child with special needs even if you did not
pay any qualified adoption expenses. See Line 18 and the
instructions for Line 5.
For more information, see Tax Topic 607 available at
www.irs.gov/taxtopics/tc607.html.
Example 1. Agency A is the child welfare department of
State W. Mark, Rachel, and Janet, brother and sisters, are U.S.
children residing in State W. When Mark was 10, Rachel 8, and
Janet 6, Agency A removed the children from the home of the
biological parents.
After Agency A placed the children in foster care, Agency A
determined it would be difficult to place the children for adoption
without providing assistance to the adoptive family because of
the ages and sibling relationship of the children. Agency A
provided the adoptive parents with monthly subsidy payments
on behalf of each child. The adoption assistance agreements
entered into between Agency A and the adoptive parents are
evidence that state W has determined that Mark, Rachel, and
Janet are children with special needs and may be used to
substantiate the adoptive parents' claim to the adoption tax
credit.
-4-

Form 8839 (2012)

Exclusion of Prior Year Benefits Worksheet
(for the adoption of a foreign child that became final in 2012)

Keep for Your Records

1. Enter the total employer-provided adoption benefits you received in 2012 and all prior years for the
adoption of the foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter $12,650. If you and another person (other than your spouse if filing jointly) each received
employer-provided adoption benefits in 2012 or any prior year to adopt the same child, see instructions
below. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter the smaller of line 1 or line 2 here and on Form 8839, line 13. If necessary, cross out the preprinted
amount on line 13 and enter the result above the preprinted amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

Next:
Enter -0- on Form 8839, line 14.
Enter the amount from line 3 above on Form 8839, line 15.
On Form 8839, line 16, enter the total amount of employer-provided adoption benefits received in 2012
and all prior years. On the dotted line next to line 16, enter “PYAB” and the total amount of benefits you
received before 2012.
Complete Form 8839 through line 24. Then, complete lines 4 through 9 below to figure the amount of
any prior year benefits you can exclude and the taxable benefits, if any, to enter on Form 8839, line 25.
4. Is the amount on your 2012 Form 8839, line 24, less than the amount on Form 8839, line 17?
No. Skip lines 4 through 6 and go to line 7.
Yes. Subtract Form 8839, line 24 from line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter the total employer-provided adoption benefits you received before 2012 included on Form 8839,
line 16, for all children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Taxable benefits. Subtract line 5 from line 4. If zero or less, enter -0-. Enter the result here and on Form
8839, line 25. 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Enter the amount from Form 8839, line 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Enter the total 2012 employer-provided adoption benefits included on Form 8839, line 16, for all
children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Prior year excluded benefits. Subtract line 8 from line 7. If zero or less, stop; you cannot exclude any of
your prior year benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

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 above. Then, subtract the amount from line 9 above 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 above.
Line 2. The maximum amount of employer-provided adoption benefits that can be excluded from income is $12,650 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
$12,650 limit must be divided between the two of you. You can divide it in any way you both agree. Enter your share of the $12,650 limit on
line 2 of the worksheet above.

taxpayers to choose as the year of finality: (1) the year of the
foreign-sending country adoption proceeding, or (2) the year of
the re-adoption, if the re-adoption occurs in either the first or
second year following the year of the foreign-country
proceeding. The expenses of re-adoption are qualified adoption
expenses in the year in which the expenses are paid, subject to
the dollar limitation.
Example. Brian and Susan paid qualified adoption expenses
of $7,000 in 2009, $8,000 in 2010, and $ 9,000 in 2011 in
connection with the adoption of an eligible foreign child from
Country X. Country X is a non-Hague country (a country not
party to the Hague Adoption Convention). In 2011, Country X
issued a final decree of adoption to Brian and Susan, who
brought the child to the United States on an IR2, IR3, or IR4 visa.
In 2012, Brian and Susan paid $1,000 in qualified adoption
expenses in connection with re-adopting the child in their home
state. Brian and Susan's modified gross income (MAGI) is less
than the MAGI limitation in all years.
Form 8839 (2012)

Under Rev. Proc. 2005-31, Brian and Susan may treat 2011
(the year of the adoption in Country X) or 2012 (the year of
re-adoption in the United States) as the year of finality. If Brian
and Susan choose 2011, then the $24,000 of aggregate
qualified adoption expenses paid in 2009, 2010, and 2011
($7,000 plus $8,000 plus $9,000) will be treated as paid in 2011.
The credit will be limited to $13,360 (the dollar limitation for
2011).
Brian and Susan instead may choose to treat 2012 (the year
of re-adoption in the United States) as the year of finality. If Brian
and Susan choose 2012, then the $25,000 of aggregate
qualified adoption expenses paid ($24,000 total from 2009,
2010, and 2011, plus the $1,000 of re-adoption expenses paid in
2012) will be treated as paid in 2012. The credit will be limited to
$12,650 (the dollar limitation for 2012).
Hague adoptions. In Hague adoptions, there is usually an
adoption proceeding in the sending country (and the country is
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one that is a party to the Hague Adoption Convention, discussed
later) before the child is permitted to come to the United States.
Rev. Proc. 2010-31 generally allows taxpayers to choose as the
year of finality: (1) the year in which the sending country enters a
final decree of adoption, or (2) the year in which the U.S.
Secretary of State issues a certificate under section 301(a) of the
Intercountry Adoption Act of 2000, 42 U.S.C. sections 14901 14954.
Custodial agreements followed by adoption in the United
States. In a few cases, the sending country may permit the
child to come to the United States under a custodial agreement.
If so, 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
the adoptive parent(s) to treat the year of the state-court
adoption as the year of finality.

Part II—Adoption Credit
Line 2

The Hague Convention on Protection of Children and
Co-operation in Respect of Intercountry Adoption
CAUTION
(Hague Adoption Convention) entered into force for the
United States on April 1, 2008. The Hague Adoption Convention
applies if you adopted a child from a country that is party to the
Hague Adoption Convention and you filed your application and
petition (Forms I-800A and I-800) with the U.S. Citizenship and
Immigration Service after March 31, 2008. See
www.adoption.state.gov for more information on the Hague
Adoption Convention, the application and petition, and a
complete list of countries that are parties to the Convention.

Line 5

If you received employer-provided adoption benefits in 2012
in connection with the adoption of a foreign child and the
adoption did not become final by the end of 2012, you must
include the benefits in the total entered on Form 1040, line 7, or
Form 1040NR, line 8. Also, enter “AB” (adoption benefits) on the
dotted line next to Form 1040, line 7, or Form 1040NR, line 8.
Exclusion of prior year benefits. If you received
employer-provided adoption benefits before 2012 in connection
with the adoption of a foreign child and the adoption became
final in 2012, you may be able to exclude part or all of those
benefits from your 2012 income. To find out if you can, complete
the Exclusion of Prior Year Benefits Worksheet . You also must
use that worksheet to complete Form 8839, Part III, and to figure
any taxable benefits to enter on Form 8839, line 25.
If the adoption of more than one eligible foreign child became
final in 2012, complete lines 1 through 3 of the Exclusion of Prior
Year Benefits Worksheet separately for each foreign child and
use the combined totals to complete lines 4 through 9 of the
worksheet.

Expenses reimbursed by your employer under a written
qualified adoption assistance program are not qualified
CAUTION
adoption expenses and must not be entered on line 5.
See the examples following Employer-Provided Adoption
Benefits, earlier.

The maximum adoption credit is $12,650 per child. If you and
another person (other than your spouse if filing jointly) each paid
qualified adoption expenses to adopt the same child, the
$12,650 limit must be divided between the two of you. You can
divide it in any way you both agree. Cross out the preprinted
entry on line 2 and enter above line 2 your share of the $12,650
limit for that child.

Line 3

If you filed Form 8839 for a prior year for the same child, enter on
line 3 the total of the amounts shown on lines 3 and 6 (or
corresponding line) of the last form you filed for the child.

!

!

CAUTION

!

CAUTION

Special rules apply if you paid expenses in connection
with the adoption of an eligible foreign child. See
Column (e), earlier, for details.

Enter on line 5 the total qualified adoption expenses (as
defined earlier) you paid in:
2011 if the adoption was not final by the end of 2012,
2011 and 2012 if the adoption became final in 2012, or
2012 if the adoption became final before 2012.

!

Special needs adoption. If you adopted a U.S. child with
special needs and the adoption became final in 2012, enter on
line 5:
$12,650, minus
Any qualified adoption expenses you used to figure any
adoption credit you claimed for the same child in a prior year.
This is the amount you entered on line 3 of Form 8839 for this
child.
If you did not claim any adoption credit for the child in a prior
year, enter $12,650 on line 5 even if your qualified adoption
expenses for the child were less than $12,650 (and even if you
did not have any qualified adoption expenses for this child).
Unsuccessful adoption. If you paid qualified adoption
expenses in an attempt to adopt a U.S. child and the attempt
was unsuccessful, treat those expenses in the same manner as
expenses you paid for adoptions not final by the end of the year.

If you check the box in column (e), you must also check
the box in column (g), indicating the adoption was
finalized in 2012 or earlier.

Example. You paid $3,000 of qualified adoption expenses in
2011 in an attempt to adopt a U.S. child. You paid $2,000 in
qualified adoption expenses early in 2012. However, the
adoption attempt was unsuccessful. Enter $3,000 on line 5. The
$2,000 paid in 2012 may qualify in 2013.

Column (f)

Enter the child's identifying number. This can be a social security
number (SSN), an adoption taxpayer identification number
(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
able to get an SSN in time to file your tax return. Apply for an
SSN using Form SS-5.

Use the following chart to find your modified adjusted gross
income to enter on line 7.

If you are in the process of adopting a child who is a U.S.
citizen or resident alien but you cannot get an SSN for the child
in time to file your return, apply for an ATIN using Form W-7A.
However, if the child is not 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 2012 or earlier.
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Form 8839 (2012)

IF you file. . .

THEN enter on line 7 the amount from. . .

Form 1040

Form 1040, line 38, increased by the total of
any:

and another person (other than your spouse if filing jointly) each
received employer-provided adoption benefits in connection with
the adoption of the same eligible child, the $12,650 limit must be
divided between the two of you. You can divide it in any way you
both agree. Cross out the preprinted entry on line 13 and enter
above line 13 your share of the $12,650 limit for that child.

Exclusion of income from Puerto Rico and
Amounts from–

Line 14

Form 2555, lines 45 and 50,
Form 2555-EZ, line 18, and
Form 4563, line 15.
Form 1040NR

If you received employer-provided adoption benefits in a prior
year for the same child, enter on line 14 the total of the amounts
shown on lines 14 and 18 (or corresponding lines) of the last
Form 8839 you filed for the child.

Form 1040NR, line 37.

Special rules apply if the prior year benefits were
received in connection with the adoption of a foreign
CAUTION
child and the adoption became final in 2012. See
Exclusion of prior year benefits, earlier.

Line 12

!

Complete the credit limit worksheet to figure the limit of your
nonrefundable adoption credit.

Credit Limit Worksheet—Line 12

Line 18

If the child was a child with special needs and the adoption
became final in 2012, enter the amount from line 15 only if your
employer has a qualified adoption assistance program, as
defined earlier under Employer-Provided Adoption Benefits. This
requirement applies whether or not you received any
employer-provided adoption benefits under this plan.

1. Enter the total of the amounts on Form 8839,
line 11
2

Enter the amount from Form 1040, line 46, or Form
1040NR, line 44

3. 1040 filers: Enter the total of any amounts from
Form 1040, lines 47 through 50; Form 5695,
line 32; line 12 of the Line 11 Worksheet in Pub.
972; Form 8396, line 9; Form 8834, line 23; Form
8910, line 22; Form 8936, line 23; and Schedule R,
line 22.

If your employer has no qualified adoption assistance
program, you must enter the smaller of line 15 or line 16.

Line 19

1040NR filers: Enter the total of any amounts
from Form 1040NR, lines 45 through 47; Form
5695, line 32; line 12 of the Line 11 Worksheet in
Pub. 972; Form 8396, line 9; Form 8834, line 23;
Form 8910, line 22; and Form 8936, line 23.

Use the following worksheet to figure your modified adjusted
gross income.
Your modified adjusted gross income (MAGI) for the
adoption credit may not be the same as the MAGI
CAUTION
figured in the worksheet below. If you are taking the
credit, be sure to read Line 7 before you enter an amount on that
line.

!

4, Subtract line 3 from line 2
5

Adoption credit. Enter the smaller of line 1 or
line 4 here and on Form 8839, line 12, and on
Form 1040, line 53, or Form 1040NR, line 50.
Check box c on that line and enter “8839 ” in the
space next to box c.

TIP

If you are not claiming the child tax credit for 2012, you
do not need Pub. 972.

Part III—Employer-Provided
Adoption Benefits
Line 13

The maximum amount that can be excluded from income for
employer-provided adoption benefits is $12,650 per child. If you

Form 8839 (2012)

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Modified Adjusted Gross Income (MAGI) Worksheet—Line 19
Before you begin:

Keep for Your Records

If you file Form 1040, complete lines 8a through 21, 23 through 32, and 36 if they apply.
If you file Form 1040NR, complete lines 9a through 21, 24 through 32, and 35 if they apply.

1. Enter the amount you would enter on line 7 of Form 1040 or line 8 of Form 1040NR if you could exclude the total
amount on Form 8839, line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the amount from Form 8839, line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Form 1040 filers, enter the total of lines 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, 20b, and 21. Form
1040NR filers, enter the total of lines 9a, 10a, 11 through 15, 16b, 17b, and 18 through 21 . . . . . . . . . . . . . . . .

3.

4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Form 1040 filers, enter the total of lines 23 through 32, and any write-in adjustments entered on the dotted line
next to line 36. Form 1040NR filers, enter the total of lines 24 through 32 and any write-in adjustments entered
on the dotted line next to line 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

Form 1040 filers, increase the amount on line 6 above by the total of the following amounts. Enter the total on
Form 8839, line 19.
• Any amount from Form 2555, lines 45 and 50, Form 2555-EZ, line 18, and Form 4563, line 15, and
• Any exclusion of income from Puerto Rico.
Form 1040NR filers, enter on Form 8839, line 19, the amount from line 6 above.

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Form 8839 (2012)