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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.

To enter information for the adoption credit (Form 8839) in TaxACT:

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Other Credits to expand the category and then click Qualified adoption expenses
  3. The program will proceed with the interview questions for you to enter the appropriate information

IRS Instructions for Form 8839 Qualified Adoption Expenses:

Adoption credit. Use Form 8839, Part II, to figure the adoption credit you can take on Form 1040, line 54 or Form 1040NR, line 51. Check box c on that line and enter “8839” in the space next to box c. You may be able to take this credit in 2014 if any of the following statements are true.

  1. You paid qualified adoption expenses in connection with the adoption of an eligible U.S. child (including any expenses paid in connection with adopting an eligible U.S. child with special needs) in:
    1. 2013 and the adoption was not final at the end of 2013, or
    2. 2014 and the adoption became final in or before 2014.
  2. You adopted an eligible U.S. child with special needs and the adoption became final in 2014. (In this case, you may be able to take the credit even if you did not pay any qualified adoption expenses.)
  3. You paid qualified adoption expenses in connection with the adoption of an eligible foreign child in:
    1. 2014 or prior years and the adoption became final in 2014, or
    2. 2014 and the adoption became final before 2014. See the instructions for line 1, column (e).
  4. You have a carryforward of an adoption credit from 2013. 

Employer-Provided Adoption Benefits.  In most cases, 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. But see Child with special needs in the IRS Instructions for Form 8839

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), for the definition of a child with special needs.
  • The adoption became final in 2014.
  • Your employer had a written qualified adoption assistance program as described earlier



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