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®:
Per theIRS 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 2017 if any of the following statements are true.
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.
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.