Form 8839

[Ptrck]

Turbo Tax is making me complete form 8839 for qualified adoption expenses. I assume because my employer reimbursed me part of my adoption expenses through their employee adoption assistance program. However, I do not have any “qualified” adoption expenses that would go on IRS form 8839 because my adoption was a “step-parent” adoption and the IRS does not consider expenses paid for adopting a spouses child eligible. Why didn’t turbo tax ask me is my adoption was a step parent adoption before making me fill in information for this form? How do I fix this?

[LenaH]

Employer-provided adoption benefits are shown in Box 12 of your Form(s) W-2 (code T), which triggered Form 8839. Since adopting stepchildren are not considered a qualified expense, you will not be able to exclude the employer-provided benefits from your income. You can delete Form 8839 if it is not needed. 

To remove Form 8839, please follow these steps:

1. Open your tax return.
2. Click on Tools.
3. Click on Delete a Form. 
4. Scroll down to Form 8839 and click Delete. 

[JustinJewell]

I have adoption subsidy reimbursement from my employer, but there has not been a placement yet for a child. So, there is no child to add on Form 8839. I have attempted to delete Form 8839 and it deletes. However, when I run smart check errors at the end, it shows several errors and makes me complete Form 8839 again.

[Ptrck]

I resolved this problem. As it pertains to step parent adoptions, there are no “qualified expenses” but child is still a “qualified child”.  So I completed the form with child’s information and put zero in for expenses.

When completing the form this way, my refund neither went up or down ...and the separate check that I received from my employer for the adoption was less than the number reported in box 12 coded T, so this leads me to believe it was taxed appropriately.

[JustinJewell]

My adoption is not related to step-children. I'm trying to figure out how to submit the return without including a child's name on Form 8839. We are in the adoption process and have not been matched/placed yet, so there is no child to enter.

[Cynthiad66]

Please see the Link below for instructions.

If the eligible child is a U.S. citizen or resident, you can take the adoption credit or exclusion even if the adoption never became final. Take the credit or exclusion as shown in the following table.

When you can take the adoption credit or exclusion depends on whether the eligible child is a citizen or resident of the United States (including U.S. possessions) at the time the adoption effort began (domestic adoption). Child who is a U.S. citizen or resident (U.S. child). If the eligible child is a U.S. citizen or resident, you can take the adoption credit or exclusion even if the adoption never became final. Take the credit or exclusion as shown in the following table.

Instructions for Form 8839