PDF document

- 1 -

Userid: CPM Schema: instrx Leadpct: 100% Pt. size: 9 Draft Ok to Print
AH XSL/XML Fileid: … ions/i8839/2023/a/xml/cycle04/source (Init. & Date) _______

Page 1 of 8 10:20 - 7-Sep-2023

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

Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8839

Qualified Adoption Expenses

Section references are to the Internal Revenue Code unless qualified adoption assistance program (see Employer-Provided
otherwise noted. Adoption Benefits, later) and any of the following statements are
true.
What's New 1. You received employer-provided adoption benefits in
2023. However, special rules apply for benefits received in
2023 maximum credit. The maximum credit and the exclusion connection with the adoption of an eligible foreign child. See
for employer-provided benefits are both $15,950 per eligible Column (e), later.
child in 2023. This amount begins to phase out if you have 2. You adopted an eligible U.S. child with special needs and
modified adjusted gross income in excess of $239,230 and is the adoption became final in 2023.
completely phased out for modified adjusted gross income of
$279,230 or more. 3. You received employer-provided adoption benefits in
connection with the adoption of an eligible foreign child in:
a. 2023 or prior years and the adoption became final in
Future Developments 2023, or
For the latest information about developments related to Form b. 2023 and the adoption became final before 2023.
8839 and its instructions, such as legislation enacted after they See Column (e), later.
are published, go to IRS.gov/Form8839.
For purposes of calculating the adoption credit in Part II,
qualified adoption expenses don't include expenses reimbursed
General Instructions by an employer under a written qualified adoption assistance
program (see Employer-Provided Adoption Benefits). For this
Purpose of Form reason, you must complete Form 8839, Part III, before you can
Use Form 8839 to figure your adoption credit and any figure the credit, if any, in Part II. But see Child with special
employer-provided adoption benefits you can exclude from your needs.
income. You can claim both the exclusion and the credit for You can't exclude employer-provided adoption benefits if
expenses of adopting an eligible child. For example, depending ! your employer is an S corporation in which you own
on the cost of the adoption, you may be able to exclude up to CAUTION more than 2% of the stock or stock with more than 2% of
$15,950 from your income and also be able to claim a credit of the voting power.
up to $15,950. But, you can't claim both a credit and exclusion
for the same expenses. See Qualified Adoption Expenses and Income limit. The income limit on the adoption credit or
Employer-Provided Adoption Benefits, later. exclusion is based on modified adjusted gross income (MAGI).
Adoption credit. Use Form 8839, Part II, to figure the adoption For 2023, use the following table to see if the income limit will
credit you can take on Schedule 3 (Form 1040), line 6c. You may affect your credit or exclusion.
be able to take this credit in 2023 if any of the following
statements are true. IF your MAGI is... THEN the income limit...
1. You paid qualified adoption expenses in connection with $239,230 or less won't affect your credit or exclusion.
the adoption of an eligible U.S. child (including any expenses between $239,231 and $279,229 will reduce your credit or exclusion.
paid in connection with adopting an eligible U.S. child with
special needs) in: $279,230 or more will eliminate your credit or exclusion.
a. 2022 and the adoption wasn't final at the end of 2022, or
b. 2023 and the adoption became final in or before 2023.
2. You adopted an eligible U.S. child with special needs and Definitions
the adoption became final in 2023. (In this case, you may be able
to take the credit even if you didn't pay any qualified adoption Eligible Child
expenses.) An eligible child is:
3. You paid qualified adoption expenses in connection with • Any child under age 18. If the child turned 18 during the year,
the adoption of an eligible foreign child in: the child is an eligible child for the part of the year they were
a. 2023 or prior years and the adoption became final in under age 18.
2023, or • Any disabled individual physically or mentally unable to take
care of themselves.
b. 2023 and the adoption became final before 2023.
See Column (e), later. If you and another person (other than your spouse if
filing jointly) adopted or tried to adopt an eligible U.S.
4. You have a carryforward of an adoption credit from 2022. CAUTION! child, see Line 2 (or Line 17, if applicable), before
Income exclusion for employer-provided adoption benefits. completing Part II (or Part III).
Use Form 8839, Part III, to figure the employer-provided
adoption benefits you can exclude from your income on Form
1040, 1040-SR, or 1040-NR, line 1f. You may be able to exclude
these benefits from income if your employer had a written

Sep 7, 2023 Cat. No. 23077T

- 2 -

Enlarge image

Page 2 of 8 Fileid: … ions/i8839/2023/a/xml/cycle04/source 10:20 - 7-Sep-2023

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

Qualified Adoption Expenses Example 4. You paid $33,000 in qualified adoption expenses
Qualified adoption expenses are reasonable and necessary to adopt an eligible foreign child, and the adoption became final
expenses directly related to, and for the principal purpose of, the in 2023. Under a qualified adoption assistance program, your
legal adoption of an eligible child. employer reimbursed you for $15,950 of those expenses. The
$15,950 reimbursement may be excluded from your income. The
Qualified adoption expenses include: remaining $17,050 of expenses ($33,000 - $15,950) continue to
• Adoption fees, be qualified adoption expenses that are eligible for the credit.
• Attorney fees, However, your credit is dollar-limited to $15,950. The remaining
• Court costs, $1,100 ($33,000 - $15,950 - $15,950) may never be claimed as
• Travel expenses (including meals and lodging) while away a credit or excluded from gross income.
from home, and
• Re-adoption expenses relating to the adoption of a foreign Who Can Take the Adoption Credit or
child.
Exclude Employer-Provided Adoption
Qualified adoption expenses don't include expenses:
• For which you received funds under any state, local, or federal Benefits?
program; You may be able to take the credit or exclusion if all three of the
• That violate state or federal law; following statements are true.
• For carrying out a surrogate parenting arrangement; 1. Your filing status is single, head of household, qualifying
• For the adoption of your spouse's child; surviving spouse, or married filing jointly. Generally, if you are
• Reimbursed by your employer or otherwise; or married, you must file a joint return to take the credit or
• Allowed as a credit or deduction under any other provision of exclusion. However, if you are married and aren't filing jointly, you
federal income tax law. may be able to take the credit or exclusion on your own return if
you are considered unmarried because you are legally
Employer-Provided Adoption Benefits separated or living apart from your spouse and you meet certain
In most cases, employer-provided adoption benefits are other requirements. See Married Persons Not Filing Jointly.
amounts your employer paid directly to either you or a third party 2. Your modified adjusted gross income (MAGI) is less than
for qualified adoption expenses under a qualified adoption $279,230 or you have a carryforward of an adoption credit from
assistance program. But see Child with special needs. 2022. To figure your MAGI, see Line 7 (for the credit) or Line 23
A qualified adoption assistance program is a separate written (for the exclusion).
plan set up by an employer to provide adoption assistance to its 3. You report the required information about the eligible child
employees. For more details, see Pub. 15-B. in Part l.
Employer-provided adoption benefits should be shown in
box 12 of your Form(s) W-2 with code T. Your salary may have Married Persons Not Filing Jointly
been reduced to pay these benefits. You may also be able to You may be able to take the credit or exclusion if all of the
exclude amounts not shown in box 12 of your Form W-2 if all of following apply.
the following apply. • Statements (2) and (3) under Who Can Take the Adoption
• You adopted a child with special needs. See Column (d) for Credit or Exclude Employer-Provided Adoption Benefits are true.
the definition of a child with special needs. • You lived apart from your spouse during the last 6 months of
• The adoption became final in 2023. 2023.
• Your employer had a written qualified adoption assistance • The eligible child lived in your home more than half of 2023.
program as described earlier. • You provided over half the cost of keeping up your home.
The following examples help illustrate how qualified adoption Additionally, a person who is filing separately may claim an
expenses and employer-provided adoption benefits apply to the adoption credit carryforward from a prior year or years, provided
maximum adoption credit allowed. that, if the person was married in the year in which the qualified
Example 1. You paid $10,000 in qualified adoption expenses adoption expenses first became allowable for the credit, the
for the adoption of an eligible child. Under a qualified adoption person filed a joint return for that year.
assistance program, your employer reimbursed you for $4,000 of
those expenses. The $4,000 reimbursement may be excluded When To Take the Credit or Exclusion
from your income. However, because of your employer’s When you can take the adoption credit or exclusion depends on
reimbursement, $4,000 of the expenses no longer meet the whether the eligible child is a citizen or resident of the United
definition of qualified adoption expenses. As a result, your States (including U.S. territories) at the time the adoption effort
maximum adoption credit is limited to $6,000 ($10,000 - $4,000). began (domestic adoption).
Example 2. You paid $20,000 in qualified adoption expenses Child who is a U.S. citizen or resident (U.S. child). If the
for the adoption of an eligible child, including $8,000 of legal eligible child is a U.S. citizen or resident, you can take the
fees. Under a qualified adoption assistance program, your adoption credit or exclusion even if the adoption never became
employer reimbursed you the $8,000 of legal fees. The $8,000 final. Take the credit or exclusion as shown in the following table.
employer reimbursement may be excluded from your income.
However, because of your employer’s reimbursement, $8,000 of
your expenses no longer meet the definition of qualified adoption
expenses. As a result, your maximum adoption credit is limited to
$12,000 ($20,000 - $8,000).
Example 3. The facts are the same as in Example 2 except
that instead of reimbursing you for the legal fees, your employer
directly paid the $8,000 to the law firm. Your 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).

-2- Instructions for Form 8839 (2023)

- 3 -

Enlarge image

Page 3 of 8 Fileid: … ions/i8839/2023/a/xml/cycle04/source 10:20 - 7-Sep-2023

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

Domestic Adoption #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 you pay THEN take the credit in... If your employer makes adoption assistance payments in a
qualifying expenses in... year before the adoption of a foreign child is final, you must
any year before the year the the year after the year include the payments in your income in the year of the payment.
adoption becomes final* of the payment. Then, on your return for the year the adoption becomes final, you
can make an adjustment to take the exclusion.
the year the adoption becomes final the year the adoption
becomes final. Your employer isn't required to withhold income tax on
payments for qualifying expenses under an adoption
any year after the year the adoption the year of the payment. CAUTION! assistance program. If you must include the payments in
becomes final income in the year paid because your adoption of a foreign child
IF your employer pays for THEN take the isn't final, your withholding may not be enough to cover the tax
on those payments. You may need to give your employer a new
qualifying expenses under an exclusion in...
Form W-4 to adjust your withholding or make estimated tax
adoption assistance program payments to avoid a penalty for underpayment of estimated tax.
in...
any year the year of the payment.
*In the case of a U.S. child, an adoption credit may be allowable for an Specific Instructions
attempted or unsuccessful adoption, as well as for an adoption that isn't
final. See the instructions for Line 1 and Line 5 for additional information. Part I—Information About Your
Eligible Child or Children
Child with special needs. If you adopt a U.S. child with special Line 1
needs, you may be able to exclude up to $15,950 and claim a Complete all columns that apply to the eligible child you adopted
credit for additional expenses up to $15,950 (minus any qualified or tried to adopt.
adoption expenses claimed for the same child in a prior year).
The exclusion may be available, even if you or your employer If you can't give complete information about an eligible child
didn't pay any qualified adoption expenses, provided the you tried to adopt in 2022 because the adoption was either
employer has a written qualified adoption assistance program. unsuccessful or wasn't final by the end of 2023, complete the
See Column (d) for more information. entries that you can on line 1. Leave blank any entries you are
unable to complete. For example, if you don't have a social
Foreign child. If the eligible child is a foreign child, you can't security number (SSN) or an adoption taxpayer identification
take the adoption credit or exclusion unless the adoption number (ATIN) for your eligible child, leave column (f) blank.
becomes final. A child is a foreign child if they weren’t a citizen or
resident of the United States (including U.S. territories) at the For examples of the type of records you may want to
time the adoption effort began. Take the credit or exclusion as TIP keep to substantiate your claim for the adoption credit,
shown in the following table. see Notice 2010-66, 2010-42 I.R.B. 437, available at
IRS.gov/irb/2010-42_IRB/#NOT-2010-66.
Foreign Adoption
Attempted Adoptions of U.S. Children
IF you pay THEN take the credit in...
qualifying expenses in... In general, the dollar limitation requires you to combine the
qualified adoption expenses you paid if you made more than one
any year before the year the the year the adoption attempt to adopt one eligible U.S. child. When you combine the
adoption becomes final becomes final. amounts you spent, complete only the “Child 1” line. Don't report
the additional attempt(s) on the “Child 2” or “Child 3” line.
the year the adoption becomes final the year the adoption Complete the “Child 2” or “Child 3” line only if you adopted or
becomes final. tried to adopt two or three eligible children.
any year after the year the adoption the year of the payment. Example 1. You planned to adopt one U.S. child. You paid
becomes final $10,000 of qualified adoption expenses in an unsuccessful
IF your employer pays for THEN take the attempt to adopt a child. You later paid $8,000 of additional
qualifying expenses under an exclusion in... qualified adoption expenses in a successful adoption of a
adoption assistance program different child. Complete only the “Child 1” line because you
in... made more than one attempt to adopt one eligible child.
Example 2. The facts are the same as in Example 1 except
any year before the year the the year the adoption that both attempts are unsuccessful and no adoption is ever
adoption becomes final becomes final. finalized. Enter $18,000 ($10,000 + $8,000) on the “Child 1” line
the year the adoption becomes final the year the adoption because you made more than one attempt to adopt one eligible
becomes final. child.
any year after the year the adoption the year of the payment. Example 3. You planned to adopt one U.S. child. You paid
becomes final $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
For more information, see Column (e). To find out when a expenses ($12,000 per child). Enter $21,000 ($9,000 + $12,000)
foreign adoption is treated as final, see Rev. Proc. 2005-31, on the “Child 1” line because you made more than one attempt
2005-26 I.R.B. 1374, available at IRS.gov/irb/2005-26_IRB/ 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.

Instructions for Form 8839 (2023) -3-

- 4 -

Enlarge image

Page 4 of 8 Fileid: … ions/i8839/2023/a/xml/cycle04/source 10:20 - 7-Sep-2023

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

If you filed Form 8839 for a prior year in connection with behalf of each child. The adoption assistance agreements
! this adoption, enter your 2023 information on the same entered into between Agency A and the adoptive parents are
CAUTION line (Child 1, Child 2, or Child 3) that you used in the evidence that State V has determined that Mark, Rachel, and
prior year. Janet are children with special needs.
Their adoptive parents may claim an adoption tax credit for
More Than Three Eligible Children each child, even if the adoptive parents paid no qualifying
If you adopted or tried to adopt more than three eligible children, adoption expenses, if all other requirements of the credit are
fill in and attach as many Forms 8839 as you need to list them. met.
Also, enter “See Attached” to the right of the Caution below Example 2. Michael and Grace are born in State W and are
line 1. members of a sibling group. Their biological mother places the
For Part II, fill in lines 2 through 6 and 10 and 11 for each siblings through a private adoption agency and voluntarily
child. But fill in lines 7 through 9 and 12 through 16 on only one surrenders her parental rights. Membership in a sibling group is
Form 8839. The amount on line 12 of that Form 8839 should be a factor that State W may use in determining that a child has
the combined total of the amounts on line 11 of all your Forms special needs. State W also requires that adoptive parents
8839. requesting a state determination of special needs follow certain
steps and make the request before the adoption is final. Michael
For Part III, fill in lines 17 through 20, 22, 26, and 27 for each and Grace’s adoptive parents don't make a request or follow the
child. But fill in lines 21, 23 through 25, 28, and 29 on only one required steps.
Form 8839. The amount on line 21 of that Form 8839 should be Michael and Grace aren't children with special needs
the combined total of the amounts on line 20 of all your Forms because State W didn't remove them from their biological mother
8839. The amount on line 28 of that Form 8839 should be the and didn't make a determination of special needs. Although
combined total of the amounts on line 27 of all your Forms 8839. membership in a sibling group is a factor that State W may use in
making a determination, State W didn't make a determination
Column (c) that either Michael or Grace wouldn't be adopted unless
A disabled individual, one who is physically or mentally unable to adoption assistance was provided to the adoptive parents.
care for themselves, is an eligible child regardless of their age at However, Michael and Grace’s adoptive parents may claim
the time of adoption. adoption tax credits for the qualified adoption expenses they
paid in connection with Michael and Grace’s adoption, if all other
Column (d) requirements of the credit are met.
A child is a child with special needs if all three of the following Example 3. Hannah is born in State X. Hannah’s biological
statements are true. parents place Hannah for adoption through a private adoption
1. The child was a citizen or resident of the United States or agency and voluntarily relinquish their parental rights. Hannah
its territories at the time the adoption effort began (U.S. child). then is adopted. A medical exam performed shortly after
2. A state (including the District of Columbia) has Hannah's birth shows that Hannah has serious physical
determined that the child can't or shouldn't be returned to their disabilities. Hannah isn't a child with special needs because
parents' home. State X didn't remove Hannah from the biological parents and
didn't make a determination of special needs. However,
3. The state has determined that the child won't be adopted Hannah's adoptive parents may claim the adoption tax credit for
unless assistance is provided to the adoptive parents. Factors the qualified adoption expenses they paid in connection with
used by states to make this determination include: Hannah's adoption, if all other requirements of the credit are met.
a. The child's ethnic background and age, Example 4. Noah is born in Country Z and is diagnosed with
b. Whether the child is a member of a minority or sibling serious physical and mental disabilities. Noah's adoptive
group, and parents, who are residents of State Y, adopt Noah in Country Z,
c. Whether the child has a medical condition or a physical, bring Noah to the United States, and re-adopt Noah in State Y.
mental, or emotional handicap. Noah isn't a child with special needs because Noah wasn't a
citizen or resident of the United States when the adoption
The state must make a determination that a child has special process began. Additionally, State Y didn't remove Noah from
needs before the child is considered to be a child with special the home of the biological parents and didn't make a
needs. A child having a specific factor or condition isn't enough determination of special needs. However, Noah's adoptive
to establish that the state has made a determination of special parents may claim the adoption tax credit for the qualified
needs. adoption expenses they paid in connection with Noah's
You may be able to claim an exclusion or credit for the adoption, if all other requirements of the credit are met.
adoption of a U.S. child with special needs even if you didn't pay If you check the box in column (d) indicating the child
any qualified adoption expenses. See Line 22 and the ! has special needs, be sure to keep evidence of the
instructions for Line 5. CAUTION state's determination in your records.
For more information, see Tax Topic 607, available at IRS.gov/
taxtopics/tc607.html. Column (e)
Example 1. Agency A is the child welfare department of A child is a foreign child if they weren’t a citizen or resident of the
State V. Mark, Rachel, and Janet, brother and sisters, are U.S. United States or its territories at the time the adoption effort
children residing in State V. When Mark was 10, Rachel 8, and began.
Janet 6, Agency A removed the children from the home of their
biological parents. Special rules. If you paid qualified adoption expenses in 2023
or any prior year in connection with the adoption of a foreign
After Agency A placed the children in foster care, Agency A child and the adoption became final in 2023, you can use the
determined it would be difficult to place the children for adoption total expenses you paid in 2023 and all prior years in
without providing assistance to the adoptive family because of determining the amount to enter on line 5. If you and another
the ages and sibling relationship of the children. Agency A person (other than your spouse if filing jointly) each paid
provided the adoptive parents with monthly subsidy payments on

-4- Instructions for Form 8839 (2023)

- 5 -

Enlarge image

Page 5 of 8           Fileid: … ions/i8839/2023/a/xml/cycle04/source                                           10:20 - 7-Sep-2023

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 2023)                                                Keep for Your Records
1.   Enter the total employer-provided adoption benefits you received in 2023 and all prior years for the adoption of the 
     foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.  
2.   Enter $15,950. If you and another person (other than your spouse if filing jointly) each received employer-provided 
     adoption benefits in 2023 or any prior year to adopt the same child, see the instructions for line 2 at the end of this 
     worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2.  
3.   Enter the smaller of line 1 or line 2 here and on Form 8839, line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             3.  
Next:
     • Enter -0- on Form 8839, line 18.
     • Enter the amount from line 3 of this worksheet on Form 8839, line 19.
     • On Form 8839, line 20, enter the total amount of employer-provided adoption benefits received in 2023 and all prior 
     years.
     • Complete Form 8839 through line 28. Then, complete lines 4 through 9 of this worksheet to figure the amount of any 
     prior year benefits you can exclude and the taxable benefits, if any, to enter on Form 8839, line 29. 
4.   Is the amount on your 2023 Form 8839, line 28, less than the amount on Form 8839, line 21?
        No. Skip lines 4 through 6 of this worksheet and go to line 7.
        Yes. Subtract Form 8839, line 28, from line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    4.  
5.   Enter the total employer-provided adoption benefits you received before 2023 included on Form 8839, line 20, 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 
     Form 8839, line 29. If more than zero, also include this amount on line 1f of Form 1040, 1040-SR, or 1040-NR  . . . . . .                                                    6.  
7.   Enter the amount from Form 8839, line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   7.  
8.   Enter the total 2023 employer-provided adoption benefits included on Form 8839, line 20, for all children . . . . . . . . . .                                                8.  
9. Prior year excluded benefits. Subtract line 8 of this worksheet from line 7. If zero or less, stop; you can't exclude any 
     of your prior year benefits  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         9.  
     Next. Figure the total you would enter on line 1f of Form 1040, 1040-SR, or 1040-NR before you exclude the amount from line 9 of this 
     worksheet. Then, subtract the amount from line 9 of this worksheet from that total. Enter the result on line 1f of Form 1040, 1040-SR, or 
     1040-NR.
Line 2. The maximum amount of employer-provided adoption benefits that can be excluded from income is $15,950 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 $15,950 limit must be 
divided between the two of you. You can divide it in any way you both agree. Enter your share of the $15,950 limit on line 2 of this worksheet.

qualified adoption expenses to adopt the same child, the total           connection with the adoption of an eligible foreign child from 
qualified expenses must be divided between the two of you. You           Country X. Country X is a non-Hague country (a country not 
can divide it in any way you both agree.                                 party to the Hague Adoption Convention). In 2022, Country X 
If the adoption didn't become final by the end of 2023, you              issued a final decree of adoption to Riley and Parker, who 
can't take the adoption credit for that child in 2023.                   brought the child to the United States on an IR2, IR3, or IR4 visa. 
                                                                         In 2023, Riley and Parker paid $1,000 in qualified adoption 
In general, the year of finality of a foreign adoption is                expenses in connection with re-adopting the child in their home 
determined either under Rev. Proc. 2005-31, I.R.B. 2005-31,              state. Riley and Parker's modified gross income (MAGI) is less 
2005-26 1374, available at IRS.gov/irb/2005-26_IRB/                      than the MAGI limitation in all years.
#RP-2005-31 (non-Hague adoptions) or under Rev. Proc. 
2010-31, 2010-41 I.R.B. 413, available at IRS.gov/irb/                      Under Rev. Proc. 2005-31, Riley and Parker may treat 2022 
2010-40_IRB/#RP-2010-31 (Hague adoptions).                               (the year of the adoption in Country X) or 2023 (the year of 
Non-Hague adoptions.       In most non-Hague adoptions, there            re-adoption in the United States) as the year of finality. If Riley 
is an adoption proceeding in the foreign country (and the country        and Parker choose 2022, then the $24,000 of aggregate 
isn't a party to the Hague Adoption Convention, discussed later)         qualified adoption expenses paid in 2020, 2021, and 2022 
before the child is allowed to come to the United States. There          ($7,000 plus $8,000 plus $9,000) will be treated as paid in 2022. 
may also be a re-adoption proceeding in the United States,               The credit will be limited to $14,890 (the dollar limitation for 
either in the same year as the foreign adoption or in a later year.      2022).
Rev. Proc. 2005-31 generally allows taxpayers to choose as the              Riley and Parker instead may choose to treat 2023 (the year 
year of finality: (1) the year of the foreign-sending country            of re-adoption in the United States) as the year of finality. If Riley 
adoption proceeding, or (2) the year of the re-adoption, if the          and Parker choose 2023, then the $25,000 of aggregate 
re-adoption occurs in either the first or second year following the      qualified adoption expenses paid ($24,000 total from 2020, 
year of the foreign-country proceeding. The expenses of                  2021, and 2022, plus the $1,000 of re-adoption expenses paid in 
re-adoption are qualified adoption expenses in the year in which         2023) will be treated as paid in 2023. The credit will be limited to 
the expenses are paid, subject to the dollar limitation.                 $15,950 (the dollar limitation for 2023).
Example.    Riley and Parker paid qualified adoption expenses               Hague adoptions.         In Hague adoptions, there is usually an 
of $7,000 in 2020, $8,000 in 2021, and $9,000 in 2022 in                 adoption proceeding in the sending country (and the country is 

Instructions for Form 8839 (2023)                                     -5-

- 6 -

Enlarge image

Page 6 of 8 Fileid: … ions/i8839/2023/a/xml/cycle04/source 10:20 - 7-Sep-2023

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

one that is a party to the Hague Adoption Convention, discussed
later) before the child is allowed to come to the United States. Part II—Adoption Credit
Rev. Proc. 2010-31 generally allows taxpayers to choose as the Line 2
year of finality: (1) the year in which the sending country enters a The maximum adoption credit is $15,950 per child. Enter
final decree of adoption, or (2) the year in which the U.S. $15,950 on line 2. If you and another person (other than your
Secretary of State issues a certificate under section 301(a) of spouse if filing jointly) each paid qualified adoption expenses to
the Intercountry Adoption Act of 2000, 42 U.S.C. sections adopt the same child, the $15,950 limit must be divided between
14901–14954. the two of you. You can divide it in any way you both agree. Enter
Custodial agreements followed by adoption in the United your share of the $15,950 limit on line 2 for that child.
States. In a few cases, the sending country may allow the child
to come to the United States under a custodial agreement. If so, Line 3
the child will be adopted later in a state court in the United
If you filed Form 8839 for a prior year for the same child, enter on
States. Both Rev. Proc. 2005-31 and Rev. Proc. 2010-31 allow
line 3 the total of the amounts shown on lines 3 and 6 (or
the adoptive parent(s) to treat the year of the state-court
corresponding line) of the last form you filed for the child.
adoption as the year of finality.
The Hague Convention on Protection of Children and Line 5
! Co-operation in Respect of Intercountry Adoption Special rules apply if you paid expenses in connection
CAUTION (Hague Adoption Convention) entered into force for the
United States on April 1, 2008. The Hague Adoption Convention ! with the adoption of an eligible foreign child. See
applies if you adopted a child from a country that is party to the CAUTION Column (e) for details.
Hague Adoption Convention and you filed your application and Enter on line 5 the total qualified adoption expenses (as
petition (Forms I-800A and I-800) with the U.S. Citizenship and defined earlier) you paid in:
Immigration Service after March 31, 2008. See • 2022 if the adoption wasn't final by the end of 2023,
www.travel.state.gov/content/travel/en/Intercountry- • 2022 and 2023 if the adoption became final in 2023, or
Adoption.html for more information on the Hague Adoption • 2023 if the adoption became final before 2023.
Convention, the application and petition, and a complete list of
countries that are parties to the Convention. Expenses reimbursed by your employer under a written
qualified adoption assistance program aren't qualified
If you received employer-provided adoption benefits in 2023 CAUTION! adoption expenses and must not be entered on line 5.
in connection with the adoption of a foreign child and the See the examples following Employer-Provided Adoption
adoption didn't become final by the end of 2023, you must Benefits.
include the benefits in the total entered on line 1f of Form 1040,
1040-SR, or 1040-NR. Special needs adoption. If you adopted a U.S. child with
Exclusion of prior year benefits. If you received special needs and the adoption became final in 2023, enter on
employer-provided adoption benefits before 2023 in connection line 5:
with the adoption of a foreign child and the adoption became • $15,950, minus
final in 2023, you may be able to exclude part or all of those • Any qualified adoption expenses you used to figure any
benefits from your 2023 income. To find out if you can, complete adoption credit you claimed for the same child in a prior year.
the Exclusion of Prior Year Benefits Worksheet. You must also This is the amount you entered on line 3 of Form 8839 for this
use that worksheet to complete Form 8839, Part III, and to figure child.
any taxable benefits to enter on Form 8839, line 29. If you didn't claim any adoption credit for the child in a prior
If the adoption of more than one eligible foreign child became year, enter $15,950 on line 5 even if your qualified adoption
final in 2023, complete lines 1 through 3 of the Exclusion of Prior expenses for the child were less than $15,950 (and even if you
Year Benefits Worksheet separately for each foreign child and didn't have any qualified adoption expenses for this child).
use the combined totals to complete lines 4 through 9 of the Unsuccessful adoption. If you paid qualified adoption
worksheet. expenses in an attempt to adopt a U.S. child and the attempt
If you check the box in column (e), you must also check was unsuccessful, treat those expenses in the same manner as
expenses you paid for adoptions not final by the end of the year.
! the box in column (g), indicating the adoption was
CAUTION finalized in 2023 or earlier. Example. You paid $3,000 of qualified adoption expenses in
2022 in an attempt to adopt a U.S. child. You paid $2,000 in
Column (f) qualified adoption expenses early in 2023. However, the
adoption attempt was unsuccessful. Enter $3,000 on line 5. The
Enter the child's identifying number. This can be a social security $2,000 paid in 2023 may qualify in 2024.
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 Enter on line 7 the amount from Form 1040, 1040-SR, or
able to get an SSN in time to file your tax return. Apply for an 1040-NR, line 11, increased by the total of any:
SSN using Form SS-5. • Exclusion of income from Puerto Rico;
• Amounts from Form 2555, lines 45 and 50; and
If you are in the process of adopting a child who is a U.S. • Amount from Form 4563, line 15.
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. Line 15
However, if the child isn't a U.S. citizen or resident alien, apply Complete the credit limit worksheet to figure the limit of your
instead for an ITIN using Form W-7. nonrefundable adoption credit.

Column (g)
Check the box in column (g) if the adoption for each child
became final in 2023 or earlier.

-6- Instructions for Form 8839 (2023)

- 7 -

Enlarge image

Page 7 of 8                Fileid: … ions/i8839/2023/a/xml/cycle04/source                                                  10:20 - 7-Sep-2023

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

Credit Limit Worksheet—Line 15                                                           have any unused credit to carry forward to 2024, be sure you 
                                                                                         keep the worksheet. You will need it to figure your credit for 2024.
1. Enter the amount from Form 8839, line 14 .           . . . . .   1. 
2. Enter the amount from Form 1040, 1040-SR, or                                          Part III—Employer-Provided
   1040-NR, line 18   . . . . . . . . . . . . . . . . . . . . . .   2. 
                                                                                         Adoption Benefits
3. 1040 or 1040-SR filers: Enter the total of any 
   amounts from Form 1040 or Form 1040-SR, line 19*;                                     Line 17
   Schedule 3 (Form 1040), lines 1 through 4, 6d, 6f,                                    The maximum amount that can be excluded from income for 
   6g, 6l, and 6m; and Form 5695, line 32.                          3.  
                                                                                         employer-provided adoption benefits is $15,950 per child. Enter 
   1040-NR filers: Enter the total of any amounts from                                   $15,950 on line 17. If you and another person (other than your 
   Form 1040-NR, line 19*; Schedule 3 (Form 1040), 
   lines 1, 2, 4, 6f, 6g, 6l, and 6m; and Form 5695,                                     spouse if filing jointly) each received employer-provided 
   line 32.                                                                              adoption benefits in connection with the adoption of the same 
4. Subtract line 3 from line 2 .  . . . . . . . . . . . . . . . .   4.                   eligible child, the $15,950 limit must be divided between the two 
                                                                                         of you. You can divide it in any way you both agree. Enter your 
5. Enter the smaller of line 1 or line 4 here and on Form                                share of the $15,950 limit on line 17 for that child.
   8839, line 15  . . . . . . . . . . . . . . . . . . . . . . . . . 5. 
* If you are directed to complete Form 8839 by Credit Limit Worksheet B in the           Line 18
Instructions for Schedule 8812 (Form 1040), include the amount from line 14 of Credit 
Limit Worksheet B instead of the amount from Form 1040, 1040-SR, or 1040-NR,             If you received employer-provided adoption benefits in a prior 
line 19.                                                                                 year for the same child, enter on line 18 the total of the amounts 
                                                                                         shown on lines 18 and 22 (or corresponding lines) of the last 
                                                                                         Form 8839 you filed for the child.
                                                                                                 Special rules apply if the prior year benefits were 
Line 16—Credit Carryforward to 2024                                                      !       received in connection with the adoption of a foreign 
If Form 8839, line 15, is smaller than line 14, you may have an                          CAUTION child and the adoption became final in 2023. See 
unused credit to carry forward to the next 5 years or until used,                        Exclusion of prior year benefits, earlier.
whichever comes first. Use the Adoption Credit Carryforward 
Worksheet to figure the amount of your credit carryforward. If you 

Adoption Credit Carryforward Worksheet—Line 16
1.  Enter the amount from Form 8839, line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                1.   
    Did you use the Adoption Credit Carryforward Worksheet—Line 16 in the 2022 Form 8839 instructions?
     No. Skip lines 2 through 6. Enter the amount from line 1 of this worksheet on line 7.
     Yes. Have that worksheet handy and go to line 2.
2.  Enter any 2018 credit carryforward (line 12 of your 2022 worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         2.   
3.  Enter any 2019 credit carryforward (line 14 of your 2022 worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         3.   
4.  Enter any 2020 credit carryforward (line 16 of your 2022 worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         4.   
5.  Enter any 2021 credit carryforward (line 18 of your 2022 worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         5.   
6.  Enter any 2022 credit carryforward (line 20 of your 2022 worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         6.   
7.  Add lines 1 through 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       7.   
8.  Enter the amount from Form 8839, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                8.   
9.  Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       9.   
    Did you enter an amount on line 2, 3, 4, 5, or 6?
          No. Enter the amount on line 9 on lines 20 and 23 below; skip all the other lines.
          Yes. Continue to line 10.
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. 2019 credit carryforward to 2024. 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. 2020 credit carryforward to 2024. 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. 2021 credit carryforward to 2024. 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. 2022 credit carryforward to 2024. Subtract line 17 from line 6. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                          18.  
19. Add lines 10, 12, 14, 16, and 18            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.  
20. 2023 credit carryforward to 2024. 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 2024. Subtract line 22 from line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    23.  

Instructions for Form 8839 (2023)                                                     -7-

- 8 -

Enlarge image

Page 8 of 8        Fileid: … ions/i8839/2023/a/xml/cycle04/source                                          10:20 - 7-Sep-2023

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

Line 22                                                              Line 23
If the child was a child with special needs and the adoption         Use the Modified Adjusted Gross Income (MAGI) Worksheet to 
became final in 2023, enter the amount from line 19 only if your     figure your modified adjusted gross income.
employer has a qualified adoption assistance program, as 
                                                                             Your modified adjusted gross income (MAGI) for the 
defined earlier under Employer-Provided Adoption Benefits. This 
                                                                             adoption credit may not be the same as the MAGI 
requirement applies whether or not you received any                  CAUTION!
                                                                             figured in the following worksheet. If you are taking the 
employer-provided adoption benefits under this plan.
                                                                     credit, be sure to read Line 7 before you enter an amount on that 
If your employer has no qualified adoption assistance                line. 
program, you must enter the smaller of line 19 or line 20.
Modified Adjusted Gross Income (MAGI) Worksheet—Line 23
Before you begin:        If you file Form 1040 or 1040-SR, complete lines 2a through 9, and Schedule 1.
                         If you file Form 1040-NR, complete lines 2a through 5b, 7, and Schedule 1.
1. Enter the amount you would enter on line 1z of Form 1040, 1040-SR, or 1040-NR if you could exclude the total amount 
   on Form 8839, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1.  
2. Enter the amount from Form 8839, line 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            2.  
3. Form 1040 or 1040-SR filers, enter the total of lines 2b, 3b, 4b, 5b, 6b, and 7 from Form 1040 or 1040-SR, and the 
   amount from Schedule 1 (Form 1040), line 10. 
   Form 1040-NR filers, enter the total of lines 2b, 3b, 4b, 5b, and 7 from Form 1040-NR, and the amount from Schedule 
   1 (Form 1040), line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.  
4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.  
5. Form 1040 or 1040-SR filers, enter the total of Schedule 1 (Form 1040), lines 11 through 20, 23, and 25.
   Form 1040-NR filers, enter the total of Schedule 1 (Form 1040), lines 11 through 18, 20, 23, and 25 . . . . . . . . . . . . .                                         5.  
6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.  
   Form 1040 or 1040-SR filers, increase the amount on line 6 of this worksheet by the total of the following amounts. Enter the total on Form 
   8839, line 23. 
   • Any amount from Form 2555, lines 45 and 50, and Form 4563, line 15; and 
   • Any exclusion of income from Puerto Rico.
   Form 1040-NR filers, enter on Form 8839, line 23, the amount from line 6 of this worksheet.

                                                                 -8-                               Instructions for Form 8839 (2023)

PDF file checksum: 960351350

(Plugin #1/9.12/13.0)