8874 New Market Credit

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8839, PAGE 1 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 203 mm (8") 3 279 mm (11")
PERFORATE: NONE

Date

8839

Date

Revised proofs
requested

OMB No. 1545-0074

Qualified Adoption Expenses
Attach to Form 1040 or 1040NR.

©

Name(s) shown on return

2006

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Department of the Treasury
Internal Revenue Service

Signature

O.K. to print

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form

Action

Attachment
Sequence No.

See separate instructions.

38

Your social security number

Before you begin: See Definitions on page 1 of the instructions.

Part I

Information About Your Eligible Child or Children—You must complete this part. See page 2 of the
instructions for details, including what to do if you need more space.
Check if child was—

1

(b)
Child’s year
of birth

(a)
Child’s name
First
Child
1
Child
2

Last

(c)
born before
1989 and
disabled

(f)
Child’s
identifying number

(d)
(e)
a child
a
with special foreign
needs
child

Caution. If the child was a foreign child, see Special rules in the instructions for line 1, column (e), that begin on page 2, before
you complete Part II or Part III. If you received employer-provided adoption benefits, complete Part III on the back next.

Part II

Adoption Credit

Child 1

2
3

4
5

6
7
8
9

10
11
12
13
14
15
16

17
18

Maximum adoption credit per child
Did you file Form 8839 for a prior year
for the same child?
No. Enter -0-.
Yes. See page 4 of the instructions
for the amount to enter.
Subtract line 3 from line 2
Qualified adoption expenses (see page 4
of the instructions)

%

2

$10,960

Child 2

00

$10,960

00

3
4
5

Caution. Your qualified adoption
expenses may not be equal to the
adoption expenses you paid in 2006.
6
Enter the smaller of line 4 or line 5
Add the amounts on line 6. If zero, skip lines 8 through 11 and enter -0- on line 12
8
Modified adjusted gross income (see page 4 of the instructions)
Is line 8 more than $164,410?
No. Skip lines 9 and 10, and enter -0- on line 11.
9
Yes. Subtract $164,410 from line 8
Divide line 9 by $40,000. Enter the result as a decimal (rounded to at least three places).
Do not enter more than 1.000
Multiply line 7 by line 10
Subtract line 11 from line 7
Credit carryforward from prior years (line 23 of your Credit Carryforward Worksheet on
page 5 of the 2005 Form 8839 instructions)
Add lines 12 and 13
15
Enter the amount from Form 1040, line 46, or Form 1040NR, line 43
1040 filers:

Enter the total of any amounts from
Form 1040, lines 47 through 51 and line 53;
Form 8396, line 11, and Form 5695, line 12.
1040NR filers: Enter the total of any amounts from
Form 1040NR, lines 44 through 46 and line
48; Form 8396, line 11; and Form 5695,
line 12.

%

10
11
12

3

.

13
14

16

Subtract line 16 from line 15
Adoption credit. Enter the smaller of line 14 or line 17 here and include on Form 1040,
line 54, or Form 1040NR, line 49; and check box b on that line. If line 17 is smaller than
line 14, you may have a credit carryforward (see page 4 of the instructions)

For Paperwork Reduction Act Notice, see page 6 of the instructions.

7

Cat. No. 22843L

17

18
Form

8839

(2006)

3
I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 8839, PAGE 2 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20.
FLAT SIZE: 203 mm (8") 3 279 mm (11")
PERFORATE: NONE

PRINTS: HEAD TO HEAD
INK: BLACK

DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8839 (2006)

Page

2

Part III Employer-Provided Adoption Benefits

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Child 1

19

Maximum exclusion per child

20

Did you receive employer-provided
adoption benefits for a prior year for
the same child?
No. Enter -0-.

21
22

Yes. See page 4 of the instructions
for the amount to enter.
Subtract line 20 from line 19

19

Employer-provided adoption benefits
you received in 2006. This amount
should be shown in box 12 of your
2006 Form(s) W-2 with code T

Enter the smaller of line 21 or line 22.
But if the child was a child with special
needs and the adoption became final in
2006, enter the amount from line 21

27

22

24

Add the amounts on line 24. If zero, skip lines 26 through 29, enter
-0- on line 30, and go to line 31

25

26

Is line 26 more than $164,410?
No. Skip lines 27 and 28, and
enter -0- on line 29.
Yes. Subtract $164,410 from
27
line 26
Divide line 27 by $40,000. Enter the result as a decimal (rounded
to at least three places). Do not enter more than 1.000

28

29

Multiply line 25 by line 28

29

30

Excluded benefits. Subtract line 29 from line 25

31

Taxable benefits. Is line 30 more than line 23?
No. Subtract line 30 from line 23. Also, include this amount, if more than zero, on
line 7 of Form 1040 or line 8 of Form 1040NR. On the line next to line 7 of
Form 1040 or line 8 of Form 1040NR, enter “AB.”

28

00

23

24

Modified adjusted gross income
(from the worksheet on page 6 of
the instructions)

$10,960

21

Add the amounts on line 22

26

00

20

23

25

$10,960

Child 2

3

30

Yes. Subtract line 23 from line 30. Enter the result as a negative number. Reduce
the total you would enter on line 7 of Form 1040 or line 8 of Form 1040NR
by the amount on Form 8839, line 31. Enter the result on line 7 of Form 1040
or line 8 of Form 1040NR. On the line next to line 7 of Form 1040 or line 8
of Form 1040NR, enter “SNE.”

TIP

.

%

31

You may be able to claim the adoption credit in Part II on the front of this form if either of the following applies.
● The total adoption expenses you paid in 2006 were not fully reimbursed by your employer and the adoption
became final in 2006 or earlier.
● You adopted a child with special needs and the adoption became final in 2006.
Printed on recycled paper

Form

8839

(2006)

PAGER/SGML

Userid: ________
Fileid: I8839.SGM

Leading adjust: -50%
( 1-Dec-2005)

❏

Draft
(Init. & date)

❏

Ok to Print

Filename: D:\USERS\pzqbb\documents\Epicfiles\2005Inst8839Lisa.sgm

Page 1 of 6

Instructions for Form 8839

8:50 - 1-DEC-2005

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2005

Department of the Treasury
Internal Revenue Service

Instructions for Form 8839
Qualified Adoption Expenses
You cannot exclude employer-provided adoption
benefits if your employer is an S-corporation in
CAUTION which you own more than 2% of the stock or
stock with more than 2% of the voting power.

General Instructions

!

What’s New
New rules apply in determining when a foreign adoption
becomes final. See Rev. Proc. 2005-31, 2005-26 I.R.B.
1374, available at www.irs.gov/irb/2005-26_IRB/
ar01.html.

Purpose of Form
Use Form 8839 to figure the amount of your adoption
credit and any employer-provided adoption benefits you
can exclude from your income. You can claim both the
credit and the exclusion for expenses of adopting an
eligible child. But, you cannot claim both for the same
expenses.
Adoption credit. Use Form 8839, Part II, to figure the
amount of any adoption credit you can take on Form
1040, line 53, or Form 1040A, line 34. You may be able
to take this credit if any of the following applies.
1. You paid qualified adoption expenses in:
a. 2004 and the adoption was not final at the end of
2004, or
b. 2005 and the adoption became final in or before
2005.
2. You adopted a child with special needs and the
adoption became final in 2005.
3. You paid expenses after 1996 in connection with
the adoption of an eligible foreign child and the adoption
became final in 2005. See the instructions for line 1,
column (e), that begin on page 2.
4. You have a carryforward of an adoption credit from
a prior year.
Income exclusion for employer-provided adoption
benefits. Use Form 8839, Part III, to figure the amount
of any employer-provided adoption benefits you can
exclude from your income on Form 1040 or 1040A, line
7. You may be able to exclude these benefits from
income if your employer had a qualified adoption
assistance program (see Employer-Provided Adoption
Benefits on this page) and any of the following applies.
• You received employer-provided adoption benefits in
2005. However, special rules apply for benefits received
in connection with the adoption of an eligible foreign
child. See the instructions for line 1, column (e), that
begin on page 2.
• You adopted a child with special needs and the
adoption became final in 2005.
• You received employer-provided adoption benefits
after 1996 in connection with the adoption of an eligible
foreign child and the adoption became final in 2005. See
the instructions for line 1, column (e), that begin on page
2.
You must complete Form 8839, Part III, before you
can figure the credit, if any, in Part II.

Definitions
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 person physically or mentally unable to
take care of himself or herself.
If you and another person (other than your
spouse if filing jointly) adopted or tried to adopt an
CAUTION eligible child, see the instructions for line 2 (or line
19 if applicable), on page 4 before completing Part II (or
Part III).

!

Employer-Provided Adoption Benefits
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. Generally, 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 the
instructions for line 1, column (d), on page 2 for the
definition of a child with special needs.
• The adoption became final in 2005.
• Your employer had a qualified adoption assistance
program as described above.

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.
• Attorney fees.
• Court costs.
• Travel expenses (including meals and lodging) while
away from home.
• 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.

Cat. No. 23077T

Page 2 of 6

Instructions for Form 8839

8:50 - 1-DEC-2005

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• For the adoption of your spouse’s child.
• Paid or reimbursed by your employer or any other

successfully adopted a different child. Complete only the
“Child 1” line because you made more than one attempt
to adopt one eligible child.
If you filed Form 8839 for a prior year in
connection with this adoption, enter your 2005
CAUTION information on the same line (Child 1 or Child 2)
that you used in the prior year.

person or organization.
• Paid before 1997.
• 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?

More Than Two Eligible Children
If you adopted or tried to adopt more than two 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 for each child. But fill
in lines 7 through 18 on only one Form 8839. The amount
on line 7 of that Form 8839 should be the combined total
of the amounts on line 6 of all the Forms 8839.
For Part III, fill in lines 19 through 22 and 24 for each
child. But fill in lines 23 and 25 through 31 on only one
Form 8839. The amount on line 23 of that Form 8839
should be the combined total of the amounts on line 22 of
all the Forms 8839. The amount on line 25 of that form
should be the combined total of the amounts on line 24.

You may be able to take the credit or exclusion if all three
of the following apply.
1. Your filing status is single, head of household,
qualifying widow(er), or married filing jointly. If your filing
status is married filing separately, see Married Persons
Filing Separate Returns below.
2. Your modified AGI is less than $199,450 or you
have a carryforward of an adoption credit from a prior
year. To figure your modified AGI, see the instructions for
line 8 on page 4 (for the credit) or line 26 on page 6 (for
the exclusion).
3. You report the required information about the
eligible child in Part l.

Column (c)

Married Persons Filing Separate Returns

A child is disabled if the child is physically or mentally
unable to take care of himself or herself.

You may be able to take the credit or exclusion if all of
the following apply.
• You meet items (2) and (3) under Who Can Take the
Adoption Credit or Exclude Employer-Provided Adoption
Benefits above.
• You lived apart from your spouse during the last 6
months of 2005.
• The eligible child lived in your home more than half of
2005.
• You provided over half the cost of keeping up your
home.

Column (d)
A child is a child with special needs if all three of the
following apply.
1. The child was a citizen or resident of the United
States or its possessions at the time the adoption
process began.
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.

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.
If you cannot give complete information about an
eligible child you tried to adopt in 2004 because the
adoption was either unsuccessful or was not final by the
end of 2005, complete the entries you can on line 1.
Enter “See Page 2” in the columns for which you do not
have the information. Then, on the bottom of page 2,
enter the name and address of any agency or agent
(such as an attorney) that assisted in the attempted
adoption.

!

CAUTION

If you check the box in column (d), be sure to
keep evidence of the state’s determination in your
records.

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 process began.
Special rules. If you paid qualified adoption expenses
after 1996 in connection with the adoption of a foreign
child and the adoption became final in 2005, you can use
the total expenses paid after 1996 in determining the
amount to enter on line 5. But you cannot include more
than $5,000 of expenses paid before 2002 in determining
the total. 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 (including those subject to the $5,000 limit)
must be divided between the two of you. You can divide it
in any way you both agree.

Child 1 or Child 2
If you made more than one attempt to adopt one eligible
child, combine the amounts you spent and complete only
the “Child 1” line. Do not report the additional attempt(s)
on the “Child 2” line. Complete the “Child 2” line only if
you adopted or tried to adopt two eligible children.
Example. You planned to adopt one child. You had
one unsuccessful attempt to adopt a child and later

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Page 3 of 6

Instructions for Form 8839

8:50 - 1-DEC-2005

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Exclusion of Prior Year Benefits Worksheet
(for the adoption of a foreign child that became final in 2005)

Keep for Your Records

1. Did you receive employer-provided adoption benefits before 2002 for the adoption of the foreign child?
❏ No. Skip lines 1 and 2; enter -0- on line 3 and go to line 4.
❏ Yes. Enter the total 1997 through 2001 employer-provided adoption benefits you received for the
adoption of the foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter $5,000. If you and another person (other than your spouse if filing jointly) each received
employer-provided adoption benefits after 1996 and before 2002 to adopt the same child, see instructions
below . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter the smaller of line 1 or line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter the total 2002 through 2005 employer-provided adoption benefits you received for the adoption of the
foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Add lines 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Enter $10,630. If you and another person (other than your spouse if filing jointly) each received
employer-provided adoption benefits in 2002 through 2005 to adopt the same child, see instructions below.

6.

7. Enter the smaller of line 5 or line 6 here and on Form 8839, line 19. If necessary, cross out the preprinted
amount on line 19 and enter the result above the preprinted amount . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

Next:

• Enter -0- on Form 8839, line 20.
• Enter the amount from line 7 above on Form 8839, line 21.
• On Form 8839, line 22, enter the total amount of employer-provided adoption benefits received in 1997
through 2005. On the dotted line next to line 22, enter “PYAB” and the total amount of benefits you received
in 1997 through 2004.
• Complete Form 8839 through line 30. Then, complete lines 8 through 13 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 31.
8. Is the amount on your 2005 Form 8839, line 30, less than the amount on Form 8839, line 23?
❏ No. Skip lines 8 through 10 and go to line 11.
❏ Yes. Subtract line 30 from line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Enter the total 1997 through 2004 employer-provided adoption benefits included on Form 8839, line 22, for
all children . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

10. Taxable benefits. Subtract line 9 from line 8. If zero or less, enter -0-. Enter the result here and on Form
8839, line 31. If more than zero, also include this amount on line 7 of Form 1040 or 1040A. On the dotted
line next to line 7, enter “AB.” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the amount from Form 8839, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total 2005 employer-provided adoption benefits included on Form 8839, line 22, for all children . . . 12.
13. Prior year excluded benefits. Subtract line 12 from line 11. If zero or less, stop; you cannot exclude any of
your prior year benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
Next. Figure the total you would enter on line 7 of Form 1040 or 1040A before you exclude the amount from line 13 above.
Then, subtract the amount from line 13 above from that total. Enter the result on line 7 of Form 1040 or 1040A. On the line next
to line 7, enter “PYAB” and the amount from line 13 above.

Worksheet Instructions
Line 2. The maximum amount of employer-provided adoption benefits received after 1996 and before 2002 that can be excluded
from income is $5,000 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 $5,000 limit must be divided between the two of you. You can divide it in any way you
both agree. Enter your share of the $5,000 limit on line 2 of the worksheet above.
Line 6. The maximum amount of employer-provided adoption benefits that can be excluded from income is $10,630 per child
(including up to $5,000 of benefits received after 1996 and before 2002). If you and another person (other than your spouse if filing
jointly) each received employer-provided adoption benefits to adopt the same child, the $10,630 limit must be divided between the
two of you. You can divide it in any way you both agree. Enter your share of the $10,630 limit on line 6 of the worksheet above.

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Page 4 of 6

Instructions for Form 8839

8:50 - 1-DEC-2005

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

• 2004 and 2005 if the adoption became final in 2005.
• 2005 if the adoption became final before 2005.

If the adoption did not become final by the end of
2005, you cannot take the adoption credit for that child in
2005. If the adoption becomes final in a later year, you
may be able to take a credit for the expenses in that year.
If you received employer-provided adoption benefits in
2005 in connection with the adoption of a foreign child
and the adoption did not become final by the end of
2005, you must include the benefits in the total entered
on Form 1040 or 1040A, line 7. Also, enter “AB”
(adoption benefits) next to line 7. If the adoption becomes
final in a later year, you may be able to exclude the
benefits from your income in that year. To find out when
a foreign adoption is treated as final, see Rev. Proc.
2005-31.
Exclusion of prior year benefits. If you received
employer-provided adoption benefits after 1996 in
connection with the adoption of a foreign child and the
adoption became final in 2005, you may be able to
exclude part or all of those benefits from your 2005
income. To find out if you can, complete the worksheet
on page 3. You also must use the worksheet to complete
Form 8839, Part III, and to figure any taxable benefits to
enter on Form 8839, line 31.
If the adoption of more than one foreign child became
final in 2005, complete lines 1 through 7 of the worksheet
on page 3 separately for each foreign child and use the
combined totals to complete lines 8 through 13 of the
worksheet.

But, if you adopted a child with special needs and the
adoption became final in 2005, enter $10,630 on line 5.

Line 8
Use the following chart to find your modified adjusted
gross income to enter on line 8.
IF you file. . .

THEN enter on line 8 the amount from. . .

Form 1040

Form 1040, line 38, increased by the total of
any:
• Exclusion of income from Puerto Rico
and
• Amounts from –
• Form 2555, lines 43 and 48.
• Form 2555-EZ, line 18.
• Form 4563, line 15.

Form 1040A

Form 1040A, line 22.

Line 18—Credit Carryforward to 2006
If Form 8839, line 17, is smaller than line 14, you may
have an unused credit to carry forward to the next 5
years or until used, whichever comes first. Use the
worksheet on page 5 to figure the amount of your credit
carryforward. If you have any unused credit to carry
forward to 2006, be sure you keep the worksheet. You
will need it to figure your credit for 2006.

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).
To get an —
• SSN, use Form SS-5.
• ATIN, use Form W-7A.
• ITIN, use Form W-7.

Part III—Employer-Provided Adoption
Benefits
Line 19
The maximum amount that can be excluded from income
for employer-provided adoption benefits is $10,630 per
child. If you 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 $10,630 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 19 and enter
above line 19 your share of the $10,630 limit for that
child.

Part II—Adoption Credit
Line 2
The maximum adoption credit is $10,630 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 $10,630 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 $10,630 limit for that
child.

Line 20
Use the following chart to find the amount to enter on line
20.

Line 3
If you filed Form 8839 in any year from 1998 through
2004, enter the total of the amounts shown for the child
on lines 3 and 6 of the last form you filed. Otherwise,
enter the amount shown for the child on line 4 of your
1997 Form 8839.

IF the last year you filed Form
8839 for the child was...

THEN enter on line 20 the total
of the amounts for the child
from that Form 8839...

1999, 2002, 2003, or 2004

Lines 20 and 24

2000 or 2001

Lines 16 and 20

1998

Lines 18 and 22

1997

Line 15

Line 5
Special rules apply if you paid expenses in
connection with the adoption of an eligible foreign
CAUTION child. See the instructions for line 1, column (e),
on page 2 for details.
Enter on line 5 the total qualified adoption expenses
you paid in:
• 2004 if the adoption was not final by the end of 2005.

!

Special rules apply if the prior year benefits were
received in connection with the adoption of a
CAUTION foreign child and the adoption became final in
2005. See Exclusion of prior year benefits on this page.

!

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Page 5 of 6

Instructions for Form 8839

8:50 - 1-DEC-2005

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Credit Carryforward Worksheet — Line 18

Keep for Your Records

1. Enter the amount from Form 8839, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

Did you use the Credit Carryforward Worksheet in the 2004 Form 8839 instructions?
❏ No. Skip lines 2 through 6. Enter the amount from line 1 above on line 7.
❏ Yes. Have that worksheet handy and go to line 2.
2. Enter any 2000 credit carryforward (line 12 of your 2004 worksheet) . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter any 2001 credit carryforward (line 14 of your 2004 worksheet) . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter any 2002 credit carryforward (line 16 of your 2004 worksheet) . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter any 2003 credit carryforward (line 18 of your 2004 worksheet) . . . . . . . . . . . . . . . . . . . . .

5.

6. Enter any 2004 credit carryforward (line 20 of your 2004 worksheet) . . . . . . . . . . . . . . . . . . . . .

6.

7. Add lines 1 through 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Enter the amount from Form 8839, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

Did you enter an amount on line 2, 3, 4, 5, or 6 above?
❏ No. Enter the amount from line 9 on lines 20 and 23 below; skip all the other lines.
❏ Yes. Continue

䊲

10. Subtract line 8 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Subtract line 2 from line 8. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. 2001 credit carryforward to 2006. Subtract line 11 from line 3. If zero or less, enter -0- . . . . . . 12.
13. Subtract line 3 from line 11. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14. 2002 credit carryforward to 2006. Subtract line 13 from line 4. If zero or less, enter -0- . . . . . . 14.
15. Subtract line 4 from line 13. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.
16. 2003 credit carryforward to 2006. Subtract line 15 from line 5. If zero or less, enter -0- . . . . . . 16.
17. Subtract line 5 from line 15. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
18. 2004 credit carryforward to 2006. Subtract line 17 from line 6. If zero or less, enter -0- . . . . . . 18.
19. Add lines 10, 12, 14, 16, and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.
20. 2005 credit carryforward to 2006. Subtract line 19 from line 9. If zero 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 2006. Subtract line 22 from line 21 . . . . . . . . . . . . . . . . . . . . . . . 23.

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Page 6 of 6

Instructions for Form 8839

8:50 - 1-DEC-2005

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Line 26

Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law. Generally, tax returns and return
information are confidential, as required by Internal
Revenue Code section 6103.
The average time and expenses required to complete
and file this form will vary depending on individual
circumstances. For the estimated averages, see the
instructions for your income tax return.
If you have suggestions for making this form simpler,
we would be happy to hear from you. See the instructions
for your income tax return.

Follow these steps before you fill in the line 26 worksheet
below.
Step

Action

1

Figure the amount you would enter on line 7 of Form 1040
or 1040A if you could exclude the total amount on Form
8839, line 23.

2

If you received social security benefits, use Pub. 915,
Social Security and Equivalent Railroad Retirement
Benefits, to figure the taxable amount of your benefits.

3

If you made contributions to a traditional IRA for 2005 and
you were covered by a retirement plan at work or through
self-employment, use Pub. 590, Individual Retirement
Arrangements (IRAs), to figure your IRA deduction.

4

If you file Form 1040, figure any write-in adjustments to be
entered on the dotted line next to line 36.

5

Complete the following lines on your return if they apply:
IF you file...

THEN complete...

Form 1040

Lines 8a through 21, and 23
through 32

Form 1040A

Lines 8a through 14b, 16, and 17

For purposes of the adoption credit, your modified
adjusted gross income may be different. If you are
CAUTION taking the credit, be sure to read the instructions
for line 8 on page 4 before you enter an amount on that
line.

!

Modified Adjusted Gross Income (AGI) Worksheet—Line 26

Keep for Your Records

Before you begin: Follow the steps above to see if you can use this worksheet instead of a publication to figure
your modified AGI.
1. Enter the amount you would enter on line 7 of Form 1040 or 1040A if you could exclude the total
amount on Form 8839, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Enter the amount from Form 8839, line 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Form 1040 filers, enter the total of lines 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, 20b,
and 21. Form 1040A filers, enter the total of lines 8a, 9a, 10, 11b, 12b, 13, and 14b . . . . . . . . . . 3.
4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Form 1040 filers, enter the total of lines 23 through 32, plus any write-in adjustments entered on
the dotted line next to line 36. Form 1040A filers, enter the total of lines 16 and 17 . . . . . . . . . . . 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 26.
• Any amount from Form 2555, lines 43 and 48, Form 2555-EZ, line 18, and Form 4563, line
15, and
•

Any exclusion of income from Puerto Rico.

Form 1040A filers, enter on Form 8839, line 26, the amount from line 6 above.

-6-