Updated November 5, 2026. Quick answer: This Form 8839 worksheet is only for employer-provided adoption benefits received before 2025 for a foreign child whose adoption became final in 2025. Lines 1 to 3 cap the exclusion at $17,280 per child and feed Form 8839 lines 19 to 22; lines 4 to 9 are completed after Form 8839 line 30 and produce the taxable benefits for line 31 and the prior year benefits you can exclude.
Who uses it
“If you received employer-provided adoption benefits before 2025 in connection with the adoption of a foreign child and the adoption became final in 2025, you may be able to exclude part or all of those benefits from your 2025 income.” The worksheet is headed “(for the adoption of a foreign child that became final in 2025)”. If the adoption was not yet final, the rule runs the other way: “If you received employer-provided adoption benefits in 2025 in connection with the adoption of a foreign child and the adoption didn’t become final by the end of 2025, you must include the benefits in the total entered on line 1f of Form 1040, 1040-SR, or 1040-NR.” More than one child: “If the adoption of more than one eligible foreign child became final in 2025, complete lines 1 through 3 of the Exclusion of Prior Year Benefits Worksheet separately for each foreign child and use the combined totals to complete lines 4 through 9 of the worksheet.”
Lines 1 to 3, the cap
| Line | What it asks |
|---|---|
| 1 | “Enter the total employer-provided adoption benefits you received in 2025 and all prior years for the adoption of the foreign child” |
| 2 | “Enter $17,280. If you and another person (other than your spouse if filing jointly) each received employer-provided adoption benefits in 2025 or any prior year to adopt the same child, see the instructions for line 2 at the end of this worksheet” |
| 3 | “Enter the smaller of line 1 or line 2 here and on Form 8839, line 19” |
The note under the worksheet explains line 2: “The maximum amount of employer-provided adoption benefits that can be excluded from income is $17,280 per child.” “the $17,280 limit must be divided between the two of you. You can divide it in any way you both agree.” The same cap runs through the Part III page.
What to do on Form 8839 before lines 4 to 9
The worksheet pauses after line 3 and sends you to the form: “Enter -0- on Form 8839, line 20.” “Enter the amount from line 3 of this worksheet on Form 8839, line 21.” “On Form 8839, line 22, enter the total amount of employer-provided adoption benefits received in 2025 and all prior years.” “Complete Form 8839 through line 30. Then, complete lines 4 through 9 of this worksheet 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.”
Lines 4 to 9, after Form 8839 line 30
| Line | What it asks |
|---|---|
| 4 | “Is the amount on your 2025 Form 8839, line 30, less than the amount on Form 8839, line 23?” If no, skip lines 4 through 6 and go to line 7. If yes, subtract Form 8839 line 30 from line 23. |
| 5 | “Enter the total employer-provided adoption benefits you received before 2025 included on Form 8839, line 22, for all children” |
| 6 | “Taxable benefits. Subtract line 5 of this worksheet from line 4. 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 1f of Form 1040, 1040-SR, or 1040-NR” |
| 7 | “Enter the amount from Form 8839, line 30” |
| 8 | “Enter the total 2025 employer-provided adoption benefits included on Form 8839, line 22, for all children” |
| 9 | “Prior year excluded benefits. Subtract line 8 of this worksheet from line 7. If zero or less, stop; you can’t exclude any of your prior year benefits” |
Two worked examples (invented numbers)
The Form 8839 amounts below are invented to show the worksheet’s arithmetic; they are not tied to a real return. Example 1 (computed): $20,000 of benefits in total, $8,000 of them received in 2025, and Form 8839 line 30 equal to line 23, so lines 4 to 6 are skipped.
| Line | Entry | Value |
|---|---|---|
| 1 | Benefits received in 2025 and all prior years (invented) | $20,000 |
| 2 | The cap printed on the worksheet (computed) | $17,280 |
| 3 | Smaller of line 1 or line 2 (computed) | $17,280 |
| 7 | Form 8839 line 30, equal to line 23 (invented) | $17,280 |
| 8 | 2025 benefits included on Form 8839 line 22 (invented) | $8,000 |
| 9 | Line 7 minus line 8 (computed) | $9,280 |
Prior year excluded benefits are $9,280 (computed).
Example 2 (computed): the same benefits, but Form 8839 line 30 comes to $12,000, under line 23, so lines 4 to 6 apply, with $12,000 of benefits received before 2025.
| Line | Entry | Value |
|---|---|---|
| 4 | Line 23 minus line 30, $17,280 (line 23, taken as the same as Example 1; invented) minus $12,000 (computed) | $5,280 |
| 5 | Benefits received before 2025 (invented) | $12,000 |
| 6 | Line 4 minus line 5, below zero so -0- (computed) | -0- |
| 7 | Form 8839 line 30 (invented) | $12,000 |
| 8 | 2025 benefits included on Form 8839 line 22 (invented) | $8,000 |
| 9 | Line 7 minus line 8 (computed) | $4,000 |
Line 6 is -0- and line 9 is $4,000 (computed).
Edition
This page reads the Instructions for Form 8839 (2025), the file irs.gov served on 2026-11-05 (archived copy below). The worksheet is on page 6 of that edition. The $17,280 cap is the 2025 figure printed there; a later edition can print a different cap.
Common mistakes
- Using this worksheet for a child adopted from the United States. It is headed for a foreign child whose adoption became final in 2025.
- Filling in lines 4 to 9 before Form 8839 is complete through line 30.
- Counting a second child’s benefits in the same line 1. With several children, lines 1 to 3 are done child by child.
- Ignoring the sharing rule on line 2 when another person received benefits for the same child.
Related: Form 8839 Part III, Form 8839, and adoption credit 2026.
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Answer againSources
- Instructions for Form 8839 (2025), Qualified Adoption Expenses: IRS archived PDF (irs.gov)
- IRS, About Form 8839, Qualified Adoption Expenses: https://www.irs.gov/forms-pubs/about-form-8839
Read from the IRS documents linked above on November 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.