Article: 50092
Use Form 8839, Qualified Adoption Expenses, to determine your adoption tax credit and the exclusion for employer-provided adoption assistance. This form allows taxpayers to reduce their tax liability by claiming eligible adoption-related expenses.
You may be able to claim both the credit and the exclusion, but not for the same expenses. For full IRS guidance, refer to the IRS Instructions for Form 8839.
2024 Limits and Phase-Outs
For Tax Year 2024:
- Maximum credit: $16,810 per eligible child
- Maximum exclusion for employer-provided benefits: $16,810 per eligible child
- Income phase-out:
- Begins at a Modified Adjusted Gross Income (MAGI) of $252,150
- Completely phased out at $292,150 or more
Eligible Child Definition
An eligible child is:
- Any child under age 18
- (If the child turned 18 during the year, they are eligible for the part of the year they were under 18.)
- Any individual who is physically or mentally incapable of self-care, regardless of age
Qualified Adoption Expenses
These are reasonable and necessary expenses directly related to, and for the principal purpose of, adopting an eligible child.
Included qualified expenses:
- Adoption fees
- Attorney fees
- Court costs
- Travel expenses (including meals and lodging) while away from home
- Re-adoption expenses related to the adoption of a foreign child
Excluded expenses:
- Expenses reimbursed by any state, local, or federal program
- Expenses that violate federal or state law
- Costs for a surrogate parenting arrangement
- Expenses to adopt your spouse‘s child
- Amounts that have been reimbursed by your employer or any other source
- Expenses claimed under another federal tax credit or deduction
How to Add Form 8839
To add Form 8839 – Qualified Adoption Expenses to your return:
- Go to the Federal taxes section.
- Click on the Review tab on the left-hand side.
- Select I’d like to see the forms I’ve filled out or search for a form.
- In the search box, enter Form 8863 or go to the Taxes tab.
- Click on Form 8863 – Qualified Adoption Expenses to open the form.
- Fill in the applicable information.
- Click Save to apply changes.