U.S. Individual Income Tax Return

2007 Instructions for Form 8839, Qualified Adoption Expenses
Purpose: This is the first circulated draft of the 2007 Instructions for Form 8839 for your
review and comments. See below for a discussion of major changes.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Instructions for Form 8839 is available at:
http://www.irs.gov/pub/irs-pdf/i8839.pdf
Form: The 2007 Form 8839 was circulated earlier at:
http://taxforms.web.irs.gov/Products/Drafts/2007-2/07f8839_d1.pdf
Other Products: Circulations of draft forms, instructions, notices, and publications are
posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail me and Karl Blake karl.d.blake@irs.gov,
(Reviewer) with any comments by July 9, 2007.
Shirley A.E. White - TLS
Tax Forms & Publications Rm. 6423
SE:W:CAR:MP:T:I:F
Email: shirley.a.white@irs.gov
(202) 622-3147 Phone
(202-927-6234 Fax

Description of Major Changes for
2007 Instructions for Form 8839, Qualified Adoption Expenses
General Changes: Years were updated to reflect 2006 and 2007, as appropriate.
Page 1
•
Page 2
•
•
Page 3
•

Text was added to list item #2 (concerning adoption of a child with special
needs) under “Adoption credit” to clarify the application of IRC 23(a)(3).
Modified adjusted gross income that phases out the credit or exclusion was
updated to $210,820.
(Rev. Proc. 2006-53)
Column (d) text was added to clarify the application of IRC 23(a)(3).
Maximum adoption benefit exclusion amount increased to $11,390.
(Rev. Proc. 2006-53)

Page 4
•

The maximum adoption credit increased to $11,390. (Rev. Proc. 2006-53)

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Page 6
•

Line 5 instructions were expanded to clarify the application of IRC 23(a)(3) and
to add a paragraph and example on unsuccessful adoption as requested by
Chief Counsel to clarify the application of IRC(a)(2)(A) to unsuccessful
adoptions.
In the step/action chart and on line 5 of the worksheet, references to line 34 of
Form 1040 were deleted. Line 34 is tuition and fees deduction on the Form 1040
WRN for 2007 and not part of calculation.
IRC 137(b)(3)(A)

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Instructions for Form 8839

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2007

Department of the Treasury
Internal Revenue Service

Instructions for Form 8839
Qualified Adoption Expenses

General Instructions

Definitions

Purpose of Form

Eligible Child

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 adoption credit you can take on Form 1040,
line 54, or Form 1040NR, line 49. You may be able to
take this credit if any of the following statements are true.
1. You paid qualified adoption expenses in:
a. 2006 and the adoption was not final at the end of
2006, or
b. 2007 and the adoption became final in or before
2007.
2. You adopted a child with special needs and the
adoption became final in 2007. (In this case, you may be
able to take the credit even if you did not pay any
qualified adoption expenses.)
3. You paid expenses after 1996 in connection with
the adoption of an eligible foreign child and the adoption
became final in 2007. 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 employer-provided adoption benefits you can exclude
from your income on Form 1040, line 7, or Form 1040NR,
line 8. You may be able to exclude these benefits from
income if your employer had a qualified adoption
assistance program (see Employer-Provided Adoption
Benefits on this page) and any of the following
statements are true.
• You received employer-provided adoption benefits in
2007. 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 2007.
• You received employer-provided adoption benefits
after 1996 in connection with the adoption of an eligible
foreign child and the adoption became final in 2007. 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.
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.

!

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).

!

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, and
• Re-adoption expenses relating to the adoption of a
foreign child.
Qualified adoption expenses do not include expenses:
• For which you received funds under any state, local, or
federal program,
• That violate state or federal law,
• For carrying out a surrogate parenting arrangement,
• For the adoption of your spouse’s child,
• Paid or reimbursed by your employer or any other
person or organization,
• Paid before 1997,
• Allowed as a credit or deduction under any other
provision of federal income tax law.

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 2007.

Cat. No. 23077T

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Instructions for Form 8839

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• Your employer had a qualified adoption assistance

If you filed Form 8839 for a prior year in
connection with this adoption, enter your 2007
CAUTION information on the same line (Child 1 or Child 2)
that you used in the prior year.

!

program as described on page 1.

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 statements are true.
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 $210,820 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 2007.
• The eligible child lived in your home more than half of
2007.
• 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 statements are true.
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

You may be able to claim a credit or exclusion for the
adoption of a child with special needs even if you did not
have any qualified adoption expenses. See line 24 and
the instructions for line 5.

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 2006 because the
adoption was either unsuccessful or was not final by the
end of 2007, complete the entries that 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), indicating the
child has special needs, 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 2007, 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
successfully adopted a different child. Complete only the
“Child 1” line because you made more than one attempt
to adopt one eligible child.
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Instructions for Form 8839

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Exclusion of Prior Year Benefits Worksheet
(for the adoption of a foreign child that became final in 2007)

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 2007 employer-provided adoption benefits you received for the adoption of the
foreign child . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

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

5.

6. Enter $11,390. If you and another person (other than your spouse if filing jointly) each received
employer-provided adoption benefits in 2002 through 2007 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 2007. On the dotted line next to line 22, enter “PYAB” and the total amount of benefits you received
in 1997 through 2006.
• 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 2007 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 2006 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 line 8 of Form 1040NR,
and enter “AB” on the dotted line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Enter the amount from Form 8839, line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Enter the total 2007 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 line 8 of Form 1040NR 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 line 8 of
Form 1040NR. On the dotted line next to the line for wages, 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 $11,390 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 $11,390 limit must be divided between the
two of you. You can divide it in any way you both agree. Enter your share of the $11,390 limit on line 6 of the worksheet above.

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Instructions for Form 8839

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If the adoption did not become final by the end of
2007, you cannot take the adoption credit for that child in
2007. If the adoption becomes final in a later year, you
may be able to take a credit for the expenses in that year.

Enter on line 5 the total qualified adoption expenses
(as defined on page 1) you paid in:
• 2006 if the adoption was not final by the end of 2007.
• 2006 and 2007 if the adoption became final in 2007.
• 2007 if the adoption became final before 2007.

To find out when a foreign adoption is treated as final,
see Rev. Proc. 2005-31, 2005-26 I.R.B. 1374, available
at www.irs.gov/irb/2005-26_IRB/ar01.html.

Special needs adoption. If you adopted a child with
special needs and the adoption became final in 2007,
enter $11,390 on line 5, even if your qualified adoption
expenses were less than $11,390 (and even if you did
not have any qualified adoption expenses).

If you received employer-provided adoption benefits in
2007 in connection with the adoption of a foreign child
and the adoption did not become final by the end of
2007, you must include the benefits in the total entered
on Form 1040, line 7, or Form 1040NR, line 8. Also, enter
“AB” (adoption benefits) next to Form 1040, line 7, or
Form 1040NR, line 8. If the adoption becomes final in a
later year, you may be able to exclude the benefits from
your income in that year.

Unsuccessful adoption. If you paid qualified adoption
expenses in an attempt to adopt a child and the attempt
was unsuccessful, treat those expenses in the same
manner as expenses for adoptions not final by the end of
the year.

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 2007, you may be able to
exclude part or all of those benefits from your 2007
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.

Example. You paid $3,000 of qualifying adoption
expenses in 2006 in an attempt to adopt a child. You paid
$2,000 in qualified adoption expenses early in 2007.
However, the adoption attempt is unsuccessful. You
would enter $3,000 on line 5. The $2,000 paid in 2007
may qualify in 2008.

If the adoption of more than one foreign child became
final in 2007, 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.

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

Column (f)

IF you file. . .

THEN enter on line 8 the amount from. . .

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).

Form 1040

Form 1040, line 38, increased by the total of
any:
• Exclusion of income from Puerto Rico and
• Amounts from –
• Form 2555, lines 45 and 50.
• Form 2555-EZ, line 18.
• Form 4563, line 15.

Form 1040NR

Form 1040NR, line 36.

To get an:

• SSN, use Form SS-5.
• ATIN, use Form W-7A.
• ITIN, use Form W-7.

Part II—Adoption Credit
Line 2

Line 18—Credit Carryforward to 2008
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 2008, be sure you keep the worksheet. You
will need it to figure your credit for 2008.

The maximum adoption credit is $11,390 per child. If you
and another person (other than your spouse if jointly)
each paid qualified adoption expenses to adopt the same
child, the $11,390 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 $11,390 limit for that child.

Part III—Employer-Provided Adoption
Benefits
Line 19

Line 3
If you filed Form 8839 in any year from 1998 through
2006, 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.

The maximum amount that can be excluded from income
for employer-provided adoption benefits is $11,390 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 $11,390 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 $11,390 limit for that
child.

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.

!

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Instructions for Form 8839

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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 2006 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 2002 credit carryforward (line 12 of your 2006 worksheet) . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter any 2003 credit carryforward (line 14 of your 2006 worksheet) . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter any 2004 credit carryforward (line 16 of your 2006 worksheet) . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter any 2005 credit carryforward (line 18 of your 2006 worksheet) . . . . . . . . . . . . . . . . . . . . .

5.

6. Enter any 2006 credit carryforward (line 20 of your 2006 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 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. 2003 credit carryforward to 2008. 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. 2004 credit carryforward to 2008. 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. 2005 credit carryforward to 2008. 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. 2006 credit carryforward to 2008. Subtract line 17 from line 6. If zero or less, enter -0- . . . . . . 18.
19. Add lines 10, 12, 14, 16, and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.
20. 2007 credit carryforward to 2008. 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 2008. Subtract line 22 from line 21 . . . . . . . . . . . . . . . . . . . . . . . 23.
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
2007. See Exclusion of prior year benefits on page 4.

Line 20

!

Use the chart below to find the amount to enter on line
20.
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, 2004, 2005, or
2006

Lines 20 and 24

2000 or 2001

Lines 16 and 20

1998

Lines 18 and 22

1997

Line 15

Line 26
Follow these steps before you fill in the line 26 worksheet
on page 6.

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Page 6 of 6

Instructions for Form 8839

10:17 - 5-JUN-2007

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

Step

Action

1

Figure the amount you would enter on line 7 of Form 1040
or line 8 of Form 1040NR if you could exclude the total
amount on Form 8839, line 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 2007 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 or Form 1040NR, figure any write-in
adjustments to be entered on the dotted line next to line 36
of Form 1040 or line 34 of Form 1040NR.

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 1040NR

Lines 9a through 21 and 24
through 31

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.

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

1. Enter the amount you would enter on line 7 of Form 1040 or line 8 of Form 1040NR if you could
exclude the total amount on Form 8839, line 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 1040NR filers, enter the total of lines 9a, 10a, 11 through 15, 16b, 17b, and 18
through 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Add lines 1, 2, and 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Form 1040 filers, enter the total of lines 23 through 32, and any write-in adjustments entered on
the dotted line next to line 36. Form 1040NR filers, enter the total of lines 24 through 31, and
any write-in adjustments entered on the dotted line next to line 34. . . . . . . . . . . . . . . . . . . . . . . . 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 45 and 50, Form 2555-EZ, line 18, and Form 4563, line
15, and
•

Any exclusion of income from Puerto Rico.

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

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