• Instructions for Form 8839 - Introductory Material
    • What's New
      • 2021 maximum credit.
    • Time to come Developments
  • Full general Instructions
    • Purpose of Form
      • Adoption credit.
      • Income exclusion for employer-provided adoption benefits.
      • Income limit.
    • Definitions
      • Eligible Kid
      • Qualified Adoption Expenses
      • Employer-Provided Adoption Benefits
    • Who Tin Have the Adoption Credit or Exclude Employer-Provided Adoption Benefits?
      • Married Persons Not Filing Jointly
    • When To Take the Credit or Exclusion
      • Child who is a U.Due south. citizen or resident (U.S. kid).
      • Child with special needs.
      • Foreign kid.
  • Specific Instructions
    • Part I—Information About Your Eligible Child or Children Line 1
      • Attempted Adoptions of U.S. Children
      • More than Than 3 Eligible Children
      • Column (c)
      • Column (d)
      • Column (due east)
        • Special rules.
          • Exclusion of Prior Year Benefits Worksheet  (for the adoption of a foreign kid that became final in 2021)
          • Non-Hague adoptions.
          • Instance.
          • Hague adoptions.
          • Custodial agreements followed by adoption in the United States.
          • Exclusion of prior year benefits.
      • Cavalcade (f)
      • Column (g)
    • Part II—Adoption Credit  Line 2
    • Line iii
    • Line v
      • Special needs adoption.
      • Unsuccessful adoption.
    • Line vii
    • Line 15
      • Credit Limit Worksheet—Line 15
    • Line 16—Credit Carryforward to 2022
      • Adoption Credit Carryforward Worksheet—Line 16
    • Part III—Employer-Provided Adoption Benefits  Line 17
    • Line eighteen
    • Line 22
    • Line 23

Instructions for Form 8839 (2021)

Qualified Adoption Expenses

Section references are to the Internal Revenue Code unless otherwise noted.

2021

Instructions for Course 8839 - Introductory Material

What's New

2021 maximum credit.

The maximum credit and the exclusion for employer-provided benefits are both $14,440 per eligible kid in 2021. This amount begins to phase out if you take modified adjusted gross income in excess of $216,660 and is completely phased out for modified adjusted gross income of $256,660 or more.

Future Developments

For the latest information near developments related to Grade 8839 and its instructions, such equally legislation enacted after they are published, go to IRS.gov/Form8839.

Full general Instructions

Purpose of Grade

Use Form 8839 to effigy your adoption credit and any employer-provided adoption benefits y'all can exclude from your income. You can claim both the exclusion and the credit for expenses of adopting an eligible kid. For example, depending on the cost of the adoption, y'all may be able to exclude up to $14,440 from your income and also be able to claim a credit of up to $14,440. But, you can't merits both a credit and exclusion for the aforementioned expenses. Run across Qualified Adoption Expenses and Employer-Provided Adoption Benefits , later.

Adoption credit.

Use Class 8839, Office Two, to figure the adoption credit you can take on Schedule 3 (Form 1040), line 6c. You may be able to take this credit in 2021 if any of the post-obit statements are true.

  1. Yous paid qualified adoption expenses in connexion with the adoption of an eligible U.Due south. child (including any expenses paid in connection with adopting an eligible U.S. kid with special needs) in:

    1. 2020 and the adoption wasn't final at the cease of 2020, or

    2. 2021 and the adoption became terminal in or earlier 2021.

  2. Y'all adopted an eligible U.S. child with special needs and the adoption became final in 2021. (In this case, you may be able to take the credit fifty-fifty if you didn't pay any qualified adoption expenses.)

  3. You paid qualified adoption expenses in connectedness with the adoption of an eligible foreign child in:

    1. 2021 or prior years and the adoption became final in 2021, or

    2. 2021 and the adoption became final before 2021.
      See Column (east) , later.

  4. You have a carryforward of an adoption credit from 2020.

Income exclusion for employer-provided adoption benefits.

Use Form 8839, Part 3, to figure the employer-provided adoption benefits you can exclude from your income on Class 1040 or 1040-SR, line one, or Form 1040-NR, line 1a. 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 2021. However, special rules apply for benefits received in connectedness with the adoption of an eligible strange child. Run into Cavalcade (e) , afterwards.

  2. You adopted an eligible U.South. child with special needs and the adoption became final in 2021.

  3. Y'all received employer-provided adoption benefits in connection with the adoption of an eligible foreign kid in:

    1. 2021 or prior years and the adoption became last in 2021, or

    2. 2021 and the adoption became final before 2021.
      See Cavalcade (e) , later.

For purposes of calculating the adoption credit in Function II, qualified adoption expenses don't include expenses reimbursed by an employer under a written qualified adoption assist programme (see Employer-Provided Adoption Benefits ). For this reason, you must complete Grade 8839, Part 3, earlier you tin can effigy the credit, if any, in Office 2. But encounter Child with special needs .

. This is an Image: caution.gif Yous can't exclude employer-provided adoption benefits if your employer is an South corporation in which you own more than ii% of the stock or stock with more than 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 2021, use the following tabular array to run across if the income limit will affect your credit or exclusion.

IF your MAGI is... Then the income limit...
$216,660 or less won't touch your credit or exclusion.
betwixt $216,661 and $256,659 will reduce your credit or exclusion.
$256,660 or more will eliminate your credit or exclusion.

Definitions

Eligible Child

An eligible child is:

  • Any child nether age xviii. If the child turned 18 during the year, the child is an eligible kid for the function of the year he or she was under historic period 18.

  • Any disabled individual physically or mentally unable to take care of himself or herself.

. This is an Image: caution.gif If you and another person (other than your spouse if filing jointly) adopted or tried to adopt an eligible U.Southward. child, encounter Line 2 (or Line 17, if applicable), earlier completing Office II (or Part Three). .

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.

Qualified adoption expenses include:

  • Adoption fees,

  • Chaser fees,

  • Courtroom costs,

  • Travel expenses (including meals and lodging) while abroad from home, and

  • Re-adoption expenses relating to the adoption of a foreign kid.

Qualified adoption expenses don't include expenses:

  • For which you received funds under whatever land, local, or federal program;

  • That violate state or federal law;

  • For carrying out a surrogate parenting arrangement;

  • For the adoption of your spouse'south kid;

  • Reimbursed by your employer or otherwise; or

  • Allowed as a credit or deduction under any other provision of federal income tax law.

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 nether a qualified adoption aid program. Only see Kid with special needs .

A qualified adoption assistance program is a carve up written plan prepare by an employer to provide adoption assistance to its employees. For more than details, see Pub. 15-B.

Employer-provided adoption benefits should exist shown in box 12 of your Form(southward) W-2 with code T. Your bacon may have been reduced to pay these benefits. You may also be able to exclude amounts not shown in box 12 of your Class W-2 if all of the following employ.

  • You adopted a child with special needs. See Column (d) for the definition of a child with special needs.

  • The adoption became final in 2021.

  • Your employer had a written qualified adoption assistance program as described earlier.

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

Instance 1.

Madelyn paid $10,000 in qualified adoption expenses for the adoption of an eligible child. Nether a qualified adoption assist program, Madelyn'south employer reimbursed her for $4,000 of those expenses. Madelyn may exclude the $4,000 reimbursement from her income. Withal, because of the employer reimbursement, $iv,000 of her expenses no longer run across the definition of qualified adoption expenses. Equally a result, Madelyn's maximum adoption credit is limited to $half-dozen,000 ($10,000 - $4,000).

Example 2.

Haylee paid $20,000 in qualified adoption expenses for the adoption of an eligible child, including $eight,000 of legal fees. Under a qualified adoption help program, Haylee's employer reimbursed the $8,000 of legal fees. Haylee may exclude the $8,000 employer reimbursement from her income. All the same, because of the employer reimbursement, $8,000 of Haylee's expenses no longer run across the definition of qualified adoption expenses. As a result, Haylee'due south maximum adoption credit is express to $12,000 ($twenty,000 - $8,000).

Case iii.

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

Instance 4.

Paul paid $30,000 in qualified adoption expenses to adopt an eligible foreign child, and the adoption became final in 2021. Under a qualified adoption aid program, Paul's employer reimbursed him for $xiv,440 of those expenses. Paul may exclude the $fourteen,440 reimbursement from his income. The remaining $15,560 of expenses ($thirty,000 - $14,440) continue to be qualified adoption expenses that are eligible for the credit. However, Paul'due south credit is dollar-limited to $xiv,440. The remaining $ane,120 ($30,000 - $14,440 - $14,440) may never be claimed as a credit or excluded from gross income.

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

You lot may be able to accept the credit or exclusion if all three of the post-obit statements are true.

  1. Your filing status is single, caput of household, qualifying widow(er), or married filing jointly. Generally, if you are married, you must file a joint return to have the credit or exclusion. Even so, if yous are married and aren't filing jointly, you may exist able to have 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 run across certain other requirements. Run into Married Persons Not Filing Jointly .

  2. Your modified adapted gross income (MAGI) is less than $256,660 or yous have a carryforward of an adoption credit from 2020. To figure your MAGI, see Line 7 (for the credit) or Line 23 (for the exclusion).

  3. You lot report the required information nigh the eligible child in Part l.

Married Persons Not Filing Jointly

You may exist able to accept the credit or exclusion if all of the following utilize.

  • Statements (ii) and (iii) under Who Tin Take the Adoption Credit or Exclude Employer-Provided Adoption Benefits are true.

  • You lived apart from your spouse during the last half dozen months of 2021.

  • The eligible child lived in your home more than one-half of 2021.

  • You provided over half the cost of keeping up your dwelling.

Additionally, a person who is filing separately may claim an adoption credit carryforward from a prior year or years, provided that, if the person was married in the year in which the qualified adoption expenses first became allowable for the credit, the person filed a joint render for that twelvemonth.

When To Have the Credit or Exclusion

When you can take the adoption credit or exclusion depends on whether the eligible child is a citizen or resident of the The states (including U.S. possessions) at the fourth dimension the adoption attempt began (domestic adoption).

Kid who is a U.South. denizen or resident (U.Southward. kid).

If the eligible child is a U.S. denizen or resident, you can take the adoption credit or exclusion fifty-fifty if the adoption never became final. Take the credit or exclusion as shown in the following tabular array.

Domestic Adoption
IF you pay
qualifying expenses in... 		THEN take the credit in...
whatsoever twelvemonth before the year the adoption becomes final* the year after the year
of the payment.
the twelvemonth the adoption becomes final the year the adoption
becomes final.
whatever 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.
*In the case of a U.Due south. child, an adoption credit may be commanded for an attempted or unsuccessful adoption, likewise as for an adoption that isn't final. Run across the instructions for Line 1 and Line five for additional information.

Child with special needs.

If y'all adopt a U.South. child with special needs, you may be able to exclude up to $14,440 and claim a credit for additional expenses upwardly to $14,440 (minus any qualified adoption expenses claimed for the same child in a prior year). The exclusion may exist available, even if y'all or your employer didn't pay any qualified adoption expenses, provided the employer has a written qualified adoption assistance program. Run across Column (d) for more information.

Strange child.

If the eligible child is a foreign kid, you can't take the adoption credit or exclusion unless the adoption becomes final. A child is a foreign child if he or she wasn't a denizen or resident of the United States (including U.S. possessions) at the time the adoption endeavor began. Take the credit or exclusion equally shown in the following table.

Foreign Adoption
IF y'all pay
qualifying expenses in... 		THEN take the credit in...
whatever year before the yr the adoption becomes final the year the adoption
becomes terminal.
the year the adoption becomes final the year the adoption
becomes final.
any year after the year the adoption becomes concluding the year of the payment.
IF your employer pays for qualifying expenses nether an adoption assist program in... So take the
exclusion in...
whatsoever twelvemonth before the yr the adoption becomes last the yr the adoption
becomes final.
the year the adoption becomes final the year the adoption
becomes final.
any year after the yr the adoption becomes final the year of the payment.

For more than data, see Column (e) . To find out when a foreign adoption is treated as final, see Rev. Proc. 2005-31, 2005-26 I.R.B. 1374, available at IRS.gov/irb/2005-26_IRB/#RP-2005-31, and Rev. Proc. 2010-31, 2010-40 I.R.B. 413, available at IRS.gov/irb/2010-40_IRB/#RP-2010-31.

If your employer makes adoption assistance payments in a year before the adoption of a strange child is final, yous must include the payments in your income in the yr of the payment. Then, on your return for the year the adoption becomes final, yous can make an aligning to accept the exclusion.

. This is an Image: caution.gif Your employer isn't required to withhold income tax on payments for qualifying expenses under an adoption assist programme. If yous must include the payments in income in the year paid because your adoption of a foreign kid isn't final, your withholding may not be plenty to comprehend the taxation on those payments. You may need to give your employer a new Form Westward-four to adjust your withholding or brand estimated tax payments to avoid a penalty for underpayment of estimated tax. .

Specific Instructions

Function I—Information About Your Eligible Child or Children Line ane

Complete all columns that employ to the eligible child you adopted or tried to adopt.

If you tin't give consummate data about an eligible child you tried to adopt in 2020 because the adoption was either unsuccessful or wasn't final past the end of 2021, complete the entries that you tin can on line 1. Leave bare whatsoever entries you are unable to complete. For example, if you don't have a social security number (SSN) or an adoption taxpayer identification number (ATIN) for your eligible child, leave column (f) blank.

. This is an Image: taxtip.gif For examples of the type of records you may want to keep to substantiate your merits for the adoption credit, run into Notice 2010-66, 2010-42 I.R.B. 437, available at IRS.gov/irb/2010-42_IRB/#Not-2010-66. .

Attempted Adoptions of U.S. Children

In general, the dollar limitation requires you to combine the qualified adoption expenses you paid if you fabricated more than than one attempt to adopt one eligible U.S. child. When you combine the amounts you spent, complete only the "Kid ane" line. Don't study the boosted effort(south) on the "Child 2" or "Kid iii" line. Complete the "Kid two" or "Child iii" lines only if you adopted or tried to prefer 2 or three eligible children.

Example 1.

You lot planned to adopt one U.S. child. Yous paid $10,000 of qualified adoption expenses in an unsuccessful endeavour to adopt a kid. Y'all later paid $viii,000 of additional qualified adoption expenses in a successful adoption of a different kid. Complete only the "Child 1" line because yous made more than one attempt to adopt 1 eligible child.

Example 2.

The facts are the same as in Example ane except that both attempts are unsuccessful and no adoption is e'er finalized. Enter $eighteen,000 ($x,000 + $eight,000) on the "Kid one" line because you fabricated more one try to adopt i eligible child.

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 lot later on successfully adopted twins after paying an additional $24,000 in qualified adoption expenses ($12,000 per kid). Enter $21,000 ($nine,000 + $12,000) on the "Child 1" line because you made more i effort to adopt ane eligible kid. Enter $12,000 on the "Child 2" line considering y'all fabricated a successful attempt to adopt a 2d eligible child.

. This is an Image: caution.gif If yous filed Grade 8839 for a prior year in connexion with this adoption, enter your 2021 information on the same line (Kid 1, Kid ii, or Child 3) that yous used in the prior yr. .

More Than Three Eligible Children

If you lot adopted or tried to adopt more than three eligible children, fill in and adhere as many Forms 8839 every bit you need to listing them. Besides, enter "Come across Attached" to the right of the Caution below line 1.

For Part II, fill up in lines 2 through vi and ten and 11 for each child. Just fill in lines 7 through 9 and 12 through 16 on only 1 Form 8839. The amount on line 12 of that Form 8839 should be the combined total of the amounts on line 11 of all your Forms 8839.

For Function Iii, fill in lines 17 through 20, 22, 26, and 27 for each child. Simply fill in lines 21, 23 through 25, 28, and 29 on only i Form 8839. The amount on line 21 of that Course 8839 should be the combined full of the amounts on line 20 of all your Forms 8839. The amount on line 28 of that Form 8839 should exist the combined total of the amounts on line 27 of all your Forms 8839.

Cavalcade (c)

A disabled individual, ane who is physically or mentally unable to treat himself or herself, is an eligible kid regardless of his or her age at the fourth dimension of adoption.

Cavalcade (d)

A child is a kid with special needs if all three of the post-obit statements are true.

  1. The child was a denizen or resident of the U.s. or its possessions at the fourth dimension the adoption effort began (U.S. child).

  2. A country (including the Commune of Columbia) has determined that the kid can't or shouldn't exist returned to his or her parents' domicile.

  3. The state has determined that the kid won't be adopted unless assistance is provided to the adoptive parents. Factors used past states to make this determination include:

    1. The child's ethnic groundwork and age,

    2. Whether the kid is a member of a minority or sibling group, and

    3. Whether the kid has a medical condition or a physical, mental, or emotional handicap.

The state must make a decision that a child has special needs before the kid is considered to be a child with special needs. A kid having a specific factor or condition isn't enough to plant that the country has made a determination of special needs.

You may be able to merits an exclusion or credit for the adoption of a U.South. kid with special needs fifty-fifty if you didn't pay any qualified adoption expenses. See Line 22 and the instructions for Line v .

For more data, see Tax Topic 607, available at IRS.gov/taxtopics/tc607.html.

Example i.

Bureau A is the child welfare department of State V. Mark, Rachel, and Janet, brother and sisters, are U.S. children residing in State V. When Mark was 10, Rachel viii, and Janet half dozen, Agency A removed the children from the abode of their biological parents.

After Bureau A placed the children in foster care, Agency A determined it would exist difficult to place the children for adoption without providing assistance to the adoptive family because of the ages and sibling human 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 Land Five has adamant that Mark, Rachel, and Janet are children with special needs and may be used to back up the adoptive parents' claim to the adoption tax credit.

Marking, Rachel, and Janet are U.South. children who Country V has removed from their biological parents. Land V too has determined that each child has special needs. Their adoptive parents may claim an adoption revenue enhancement credit for each child, even if the adoptive parents paid no qualifying adoption expenses, if all other requirements of the credit are met.

Case ii.

Michael and Grace are born in State W and are members of a sibling grouping. Their biological female parent places the siblings through a individual adoption agency and voluntarily surrenders her parental rights. Membership in a sibling grouping is a factor that Land W may use in determining that a child has special needs. State Due west also requires that adoptive parents requesting a state conclusion of special needs follow certain steps and make the request before the adoption is final. Michael and Grace'due south adoptive parents don't brand a request or follow the required steps.

Michael and Grace aren't children with special needs considering Country W didn't remove them from their biological mother and didn't make a determination of special needs. Although membership in a sibling grouping is a cistron that Land W may use in making a determination, State W didn't make a determination that either Michael or Grace wouldn't be adopted unless adoption aid was provided to the adoptive parents. However, Michael and Grace's adoptive parents may claim adoption tax credits for the qualified adoption expenses they paid in connection with Michael and Grace's adoption, if all other requirements of the credit are met.

Example 3.

Hannah is built-in in State X. Her biological parents place Hannah for adoption through a private adoption bureau and voluntarily relinquish their parental rights. Hannah then is adopted. A medical test performed shortly later on Hannah's birth shows that Hannah has serious physical disabilities. Hannah isn't a child with special needs considering Land X didn't remove her from her biological parents and didn't make a determination of special needs. However, Hannah's adoptive parents may merits the adoption taxation credit for the qualified adoption expenses they paid in connection with Hannah'southward adoption, if all other requirements of the credit are met.

Instance iv.

Noah is born in Country Z and is diagnosed with serious concrete and mental disabilities. Noah'due south adoptive parents, who are residents of State Y, prefer Noah in Land Z, bring him to the Us, and re-adopt him in State Y. Noah isn't a kid with special needs because he wasn't a citizen or resident of the Usa when the adoption process began. Additionally, Land Y didn't remove him from the dwelling house of his biological parents and didn't make a determination of 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.

. This is an Image: caution.gif If you lot check the box in column (d) indicating the child has special needs, be sure to go along evidence of the land's determination in your records. .

Column (e)

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 effort began.

Special rules.

If you paid qualified adoption expenses in 2021 or any prior year in connectedness with the adoption of a foreign kid and the adoption became final in 2021, y'all can use the full expenses y'all paid in 2021 and all prior years in determining the amount to enter on line v. If you and another person (other than your spouse if filing jointly) each paid qualified adoption expenses to adopt the same child, the full qualified expenses must be divided between the two of you lot. Yous can split information technology in any way you both concur.

Exclusion of Prior Year Benefits Worksheet (for the adoption of a foreign kid that became final in 2021)

1. Enter the total employer-provided adoption benefits you received in 2021 and all prior years for the adoption of the foreign child 1. _____
two. Enter $xiv,440 . If yous and another person (other than your spouse if filing jointly) each received employer-provided adoption benefits in 2021 or whatever prior year to adopt the aforementioned kid, see the instructions for line ii at the terminate of this worksheet ii. _____
3. Enter the smaller of line ane or line 2 here and on Class 8839, line 17 3. _____
Adjacent:

  • Enter -0- on Form 8839, line eighteen.

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

  • On Form 8839, line 20, enter the total amount of employer-provided adoption benefits received in 2021 and all prior years. On the dotted line adjacent to line twenty, enter "PYAB" and the total corporeality of benefits yous received before 2021.

  • Consummate Form 8839 through line 28. And so, complete lines 4 through 9 of this worksheet to figure the amount of any prior twelvemonth benefits you lot tin can exclude and the taxable benefits, if whatsoever, to enter on Form 8839, line 29.

four. Is the corporeality on your 2021 Course 8839, line 28, less than the corporeality on Form 8839, line 21?
□ No. Skip lines 4 through half-dozen of this worksheet and go to line 7.
□ Yes. Subtract Class 8839, line 28, from line 21 iv. _____
5. Enter the total employer-provided adoption benefits you received before 2021 included on Form 8839, line twenty, for all children 5. _____
6. Taxable benefits. Subtract line 5 of this worksheet from line 4. If zero or less, enter -0-. Enter the result here and on Grade 8839, line 29. If more than zippo, likewise include this amount on line ane of Form 1040 or 1040-SR or line 1a of Form 1040-NR, and enter "AB" on the dotted line 6. _____
7. Enter the amount from Grade 8839, line 28 7. _____
eight. Enter the total 2021 employer-provided adoption benefits included on Form 8839, line 20, for all children viii. _____
nine. Prior twelvemonth excluded benefits. Subtract line eight of this worksheet from line 7. If aught or less, stop; you lot can't exclude whatever of your prior year benefits 9. _____
Next. Figure the total you would enter on line ane of Course 1040 or 1040-SR or line 1a of Form 1040-NR before you exclude the corporeality from line 9 of this worksheet. Then, subtract the amount from line nine of this worksheet from that total. Enter the result on line 1 of Form 1040 or 1040-SR or line 1a of Form 1040-NR. 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 exist excluded from income is $14,440 per kid. If you and another person (other than your spouse if filing jointly) each received employer-provided adoption benefits to adopt the aforementioned child, the $xiv,440 limit must be divided between the ii of you. You can divide it in any way you both agree. Enter your share of the $fourteen,440 limit on line 2 of this worksheet.

If the adoption didn't become final by the stop of 2021, y'all can't take the adoption credit for that child in 2021.

In general, the twelvemonth of finality of a foreign adoption is determined either nether Rev. Proc. 2005-31, I.R.B. 2005-31, 2005-26 1374, available at IRS.gov/irb/2005-26_IRB/#RP-2005-31 (non-Hague adoptions) or under Rev. Proc. 2010-31, 2010-41 I.R.B. 413, available at IRS.gov/irb/2010-40_IRB/#RP-2010-31 (Hague adoptions).

Non-Hague adoptions.

In about non-Hague adoptions, there is an adoption proceeding in the strange country (and the country isn't a party to the Hague Adoption Convention, discussed later) before the child is immune 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 afterwards year. Rev. Proc. 2005-31 generally allows taxpayers to cull as the yr of finality: (ane) the year of the foreign-sending country adoption proceeding, or (ii) the year of the re-adoption, if the re-adoption occurs in either the beginning or second year following the year of the foreign-state proceeding. The expenses of re-adoption are qualified adoption expenses in the year in which the expenses are paid, subject to the dollar limitation.

Case.

Brian and Susan paid qualified adoption expenses of $seven,000 in 2018, $8,000 in 2019, and $9,000 in 2020 in connection with the adoption of an eligible foreign child from State 10. Country X is a not-Hague land (a country not party to the Hague Adoption Convention). In 2020, Country X issued a final decree of adoption to Brian and Susan, who brought the child to the Usa on an IR2, IR3, or IR4 visa. In 2021, Brian and Susan paid $1,000 in qualified adoption expenses in connection with re-adopting the child in their home land. Brian and Susan'south modified gross income (MAGI) is less than the MAGI limitation in all years.

Under Rev. Proc. 2005-31, Brian and Susan may treat 2020 (the year of the adoption in Country X) or 2021 (the year of re-adoption in the The states) equally the year of finality. If Brian and Susan choose 2020, so the $24,000 of amass qualified adoption expenses paid in 2018, 2019, and 2020 ($7,000 plus $8,000 plus $9,000) will exist treated as paid in 2020. The credit will be limited to $xiv,300 (the dollar limitation for 2020).

Brian and Susan instead may choose to treat 2021 (the year of re-adoption in the Usa) every bit the year of finality. If Brian and Susan choose 2021, then the $25,000 of amass qualified adoption expenses paid ($24,000 total from 2018, 2019, and 2020, plus the $1,000 of re-adoption expenses paid in 2021) will exist treated every bit paid in 2021. The credit will be limited to $fourteen,440 (the dollar limitation for 2021).

Hague adoptions.

In Hague adoptions, at that place is usually an adoption proceeding in the sending state (and the land is one that is a party to the Hague Adoption Convention, discussed later) before the child is immune to come up to the United States. Rev. Proc. 2010-31 by and large allows taxpayers to choose equally the yr of certitude: (ane) the yr in which the sending country enters a final decree of adoption, or (2) the twelvemonth 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 past adoption in the United States.

In a few cases, the sending country may allow the child to come up to the United States under a custodial agreement. If then, the child will be adopted subsequently in a state courtroom in the United States. Both Rev. Proc. 2005-31 and Rev. Proc. 2010-31 permit the adoptive parent(s) to treat the year of the state-court adoption as the year of finality.

. This is an Image: caution.gif The Hague Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption (Hague Adoption Convention) entered into forcefulness for the United States on Apr 1, 2008. The Hague Adoption Convention applies if you adopted a kid from a country that is party to the Hague Adoption Convention and you filed your awarding and petition (Forms I-800A and I-800) with the U.S. Citizenship and Immigration Service after March 31, 2008. See www.travel.state.gov/content/travel/en/Intercountry-Adoption.html for more than information on the Hague Adoption Convention, the awarding and petition, and a complete list of countries that are parties to the Convention. .

If y'all received employer-provided adoption benefits in 2021 in connection with the adoption of a foreign kid and the adoption didn't become final by the end of 2021, you must include the benefits in the total entered on Form 1040 or 1040-SR, line one, or Form 1040-NR, line 1a. Also, enter "AB" on the dotted line next to Course 1040 or 1040-SR, line 1, or Form 1040-NR, line 1a.

Exclusion of prior year benefits.

If you received employer-provided adoption benefits earlier 2021 in connection with the adoption of a foreign kid and the adoption became final in 2021, you may be able to exclude role or all of those benefits from your 2021 income. To detect out if y'all can, complete the Exclusion of Prior Year Benefits Worksheet. You lot must also apply that worksheet to complete Form 8839, Role Iii, and to effigy whatsoever taxable benefits to enter on Course 8839, line 29.

If the adoption of more one eligible foreign child became final in 2021, complete lines 1 through three of the Exclusion of Prior Year Benefits Worksheet separately for each foreign child and use the combined totals to complete lines iv through ix of the worksheet.

. This is an Image: caution.gif If you check the box in cavalcade (e), you must too bank check the box in column (g), indicating the adoption was finalized in 2021 or earlier. .

Column (f)

Enter the kid'south identifying number. This tin can be a social security number (SSN), an adoption taxpayer identification number (ATIN), or an private taxpayer identification number (ITIN).

Enter the child'due south SSN if the child has an SSN or you will be able to go an SSN in time to file your taxation return. Use for an SSN using Grade 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.South. citizen or resident alien, apply instead for an ITIN using Course W-7.

Column (g)

Cheque the box in column (thou) if the adoption for each kid became final in 2021 or earlier.

Office II—Adoption Credit Line 2

The maximum adoption credit is $14,440 per kid. Enter $14,440 on line ii. If yous and some other person (other than your spouse if filing jointly) each paid qualified adoption expenses to adopt the same kid, the $xiv,440 limit must be divided between the two of you. You can divide it in any way you both agree. Enter your share of the $xiv,440 limit on line 2 for that kid.

Line three

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

Line five

. This is an Image: caution.gif Special rules apply if you paid expenses in connection with the adoption of an eligible foreign child. See Cavalcade (e) for details. .

Enter on line 5 the total qualified adoption expenses (as defined earlier) you paid in:

  • 2020 if the adoption wasn't terminal by the finish of 2021,

  • 2020 and 2021 if the adoption became last in 2021, or

  • 2021 if the adoption became final before 2021.

. This is an Image: caution.gif Expenses reimbursed past your employer under a written qualified adoption assistance program aren't qualified adoption expenses and must not be entered on line 5. Run into the examples post-obit Employer-Provided Adoption Benefits. .

Special needs adoption.

If yous adopted a U.S. kid with special needs and the adoption became terminal in 2021, enter on line 5:

  • $14,440, minus

  • Any qualified adoption expenses yous used to figure any adoption credit y'all claimed for the same kid in a prior year. This is the corporeality you lot entered on line three of Grade 8839 for this kid.

If you didn't claim whatsoever adoption credit for the child in a prior twelvemonth, enter $14,440 on line 5 even if your qualified adoption expenses for the child were less than $14,440 (and even if you didn't have whatsoever qualified adoption expenses for this child).

Unsuccessful adoption.

If you paid qualified adoption expenses in an effort to adopt a U.South. child and the attempt was unsuccessful, care for those expenses in the same style as expenses you paid for adoptions not terminal by the stop of the year.

Example.

You paid $three,000 of qualified adoption expenses in 2020 in an endeavor to adopt a U.S. child. You paid $two,000 in qualified adoption expenses early on in 2021. Notwithstanding, the adoption attempt was unsuccessful. Enter $3,000 on line five. The $2,000 paid in 2021 may qualify in 2022.

Line 7

Enter on line 7 the amount from Class 1040, 1040-SR, or 1040-NR, line 11, increased by the total of whatsoever:

  • Exclusion of income from Puerto Rico;

  • Amounts from Form 2555, lines 45 and 50; and

  • Amount from Class 4563, line xv.

Line 15

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

Credit Limit Worksheet—Line 15

1. Enter the amount from Course 8839, line 14 ane. _____
2. Enter the amount from Form 1040, 1040-SR, or 1040-NR, line xviii 2. _____
3. 1040 or 1040-SR filers: Enter the total of any amounts from Form 1040 or Class 1040-SR, line nineteen*; Schedule 3 (Form 1040), lines 1 through 4, 6d through 6g, and 6l; and Form 5695, line thirty. iii. _____
1040-NR filers: Enter the total of any amounts from Course 1040-NR, line 19*; Schedule three (Class 1040), lines 1, 2, 4, 6e through 6g, and 6l; and Form 5695, line thirty.
4. Decrease line three from line ii iv. _____
5. Enter the smaller of line 1 or line 4 here and on Class 8839, line xv five. _____
* If you are directed to complete Class 8839 by Credit Limit Worksheet B in the Instructions for Schedule 8812 (Course 1040), include the corporeality from line 14 of Credit Limit Worksheet B instead of the amount from Course 1040, 1040-SR, or 1040-NR, line 19.

Line 16—Credit Carryforward to 2022

If Class 8839, line 15, is smaller than line 14, you may have an unused credit to carry forward to the side by side 5 years or until used, whichever comes first. Employ the Adoption Credit Carryforward Worksheet to effigy the amount of your credit carryforward. If y'all have whatever unused credit to carry forrard to 2022, be sure yous keep the worksheet. You volition demand it to figure your credit for 2022.

Adoption Credit Carryforward Worksheet—Line 16

one. Enter the corporeality from Course 8839, line 12 1. _____
Did yous use the Adoption Credit Carryforward Worksheet—Line xvi in the 2020 Form 8839 instructions?
□ No. Skip lines 2 through 6. Enter the corporeality from line 1 of this worksheet on line 7.
□ Yes. Take that worksheet handy and go to line 2.
2. Enter whatever 2016 credit carryforward (line 12 of your 2020 worksheet) 2. _____
3. Enter any 2017 credit carryforward (line xiv of your 2020 worksheet) 3. _____
4. Enter any 2018 credit carryforward (line 16 of your 2020 worksheet) 4. _____
5. Enter any 2019 credit carryforward (line 18 of your 2020 worksheet) 5. _____
vi. Enter any 2020 credit carryforward (line 20 of your 2020 worksheet) six. _____
7. Add together lines ane through six seven. _____
8. Enter the amount from Class 8839, line 16 8. _____
ix. Decrease line viii from line vii 9. _____
Did you enter an corporeality on line 2, three, 4, 5, or 6?
□ No. Enter the corporeality on line 9 on lines twenty and 23 below; skip all the other lines.
□ Yep. Continue to line 10.
x. Decrease line 8 from line two. If zero or less, enter -0- 10. _____
11. Subtract line 2 from line 8. If cipher or less, enter -0- 11 . _____
12. 2017 credit carryforward to 2022. Subtract line 11 from line 3. If zero or less, enter -0- 12. _____
13. Decrease line 3 from line xi. If zero or less, enter -0- 13. _____
14. 2018 credit carryforward to 2022. Subtract line xiii from line iv. If zero or less, enter -0- 14. _____
xv. Subtract line 4 from line xiii. If null or less, enter -0- 15. _____
xvi. 2019 credit carryforward to 2022. Subtract line 15 from line five. If zero or less, enter -0- 16. _____
17. Subtract line 5 from line xv. If zero or less, enter -0- 17. _____
18. 2020 credit carryforward to 2022. Subtract line 17 from line six. If zero or less, enter -0- eighteen. _____
19. Add together lines 10, 12, 14, xvi, and 18 nineteen. _____
20. 2021 credit carryforward to 2022. Subtract line 19 from line 9. If goose egg or less, enter -0- 20. _____
21. Add lines 19 and 20 21. _____
22. Enter the amount from line 10 22. _____
23. Total credit carryforward to 2022. Decrease line 22 from line 21 23. _____

Part III—Employer-Provided Adoption Benefits Line 17

The maximum amount that can be excluded from income for employer-provided adoption benefits is $fourteen,440 per kid. Enter $fourteen,440 on line 17. If you and some other 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 $xiv,440 limit must be divided between the two of yous. You can divide it in any style yous both agree. Enter your share of the $14,440 limit on line 17 for that kid.

Line 18

If you received employer-provided adoption benefits in a prior year for the same child, enter on line 18 the total of the amounts shown on lines 18 and 22 (or respective lines) of the last Form 8839 you filed for the child.

. This is an Image: caution.gif Special rules apply if the prior year benefits were received in connexion with the adoption of a strange child and the adoption became final in 2021. Encounter Exclusion of prior year benefits, earlier. .

Line 22

If the child was a child with special needs and the adoption became terminal in 2021, enter the corporeality from line 19 only if your employer has a qualified adoption assistance program, as defined before under Employer-Provided Adoption Benefits . This requirement applies whether or not yous received whatsoever employer-provided adoption benefits under this plan.

If your employer has no qualified adoption assistance program, y'all must enter the smaller of line xix or line twenty.

Line 23

Utilise the Modified Adjusted Gross Income (MAGI) Worksheet to figure your modified adjusted gross income.

. This is an Image: caution.gif Your modified adjusted gross income (MAGI) for the adoption credit may not be the same as the MAGI figured in the following worksheet. If y'all are taking the credit, be sure to read Line seven before you enter an amount on that line. .

Modified Adapted Gross Income (MAGI) Worksheet—Line 23

Taxation Tables

  • If yous file Grade 1040 or 1040-SR, complete lines 2a through 9, and Schedule ane.

  • If yous file Course 1040-NR, complete lines 2a through 5b, 7, and Schedule one.
1. Enter the amount you would enter on line 1 of Form 1040 or 1040-SR or on line 1a of Form 1040-NR reduced past line 10c of Grade 1040-NR, if you could exclude the total amount on Course 8839, line 21 1. _____
two. Enter the corporeality from Form 8839, line 21 2. _____
3. Grade 1040 or 1040-SR filers, enter the total of lines 2b, 3b, 4b, 5b, 6b, vii, and the amount from Schedule 1 (Form 1040), line ten.
Form 1040-NR filers, enter the total of lines 2b, 3b, 4b, 5b, seven, and the corporeality from Schedule 1 (Form 1040), line 10		 three. _____
4. Add lines 1, 2, and iii 4. _____
v. Form 1040 or 1040-SR filers, enter the total of Schedule 1 (Form 1040), lines 11 through twenty, 23, and 25.
Form 1040-NR filers, enter the total of Schedule 1 (Form 1040), lines xi through eighteen, 20, 23, and 25		 five. _____
half dozen. Decrease line 5 from line 4 half-dozen. _____

Form 1040 or 1040-SR filers, increase the amount on line 6 of this worksheet by the total of the post-obit amounts. Enter the total on Form 8839, line 23.
• Any amount from Form 2555, lines 45 and fifty, and Form 4563, line 15; and
• Any exclusion of income from Puerto Rico.
Class 1040-NR filers, enter on Form 8839, line 23, the amount from line 6 of this worksheet.