Updated October 19, 2026. Quick answer: Part II of Form 8839 figures the adoption credit, lines 2 through 18. For 2025 the maximum is $17,280 per child. The credit begins to phase out above modified adjusted gross income of $259,190. Up to $5,000 of it can be refundable. A U.S. child with special needs has its own rule for line 5.
Quick reference
| Item | As the IRS form or instructions state it |
|---|---|
| Part and lines | Part II, Adoption Credit, lines 2 through 18 |
| Maximum credit per child | “The maximum adoption credit (the total of the refundable and nonrefundable credit) is $17,280 per child.” |
| Where phase-out starts | “Is line 7 more than $259,190?” |
| Phase-out divisor | “Divide line 8 by $40,000.” |
| Fully phased out | “is completely phased out for modified adjusted gross income of $299,190 or more.” |
| Refundable portion | “Beginning in 2025, up to $5,000 of the adoption credit is refundable.” |
| Refundable cap on the form | “Enter the smaller of the amount on line 11a or $5,000” |
| Unused nonrefundable credit | “you may have an unused nonrefundable credit to carry forward to the next 5 years or until used, whichever comes first.” |
What Part II does
Part II is the credit calculation. The instructions explain where the results go: “Use Form 8839, Part II, to figure the nonrefundable adoption credit you can take on Schedule 3 (Form 1040), line 6c, and the refundable adoption credit you can take on Form 1040, line 30.” The form allows three children in columns, and lines 2 to 6 run for each child, and one modified adjusted gross income test on lines 7 to 9 applies to each child’s amount.
This page covers the credit lines only. The child information and general eligibility rules are on the Form 8839 overview page, and the employer benefit exclusion is on the Form 8839 Part III page.
Lines 2 to 6: the cap and the expenses
Line 2 reads “Maximum adoption credit per child. Enter $17,280.” “If you and another person (other than your spouse if filing jointly) each paid qualified adoption expenses to adopt the same child, the $17,280 limit must be divided between the two of you.” “You can divide it in any way you both agree.”
Line 3 handles earlier years. “If you filed Form 8839 for a prior year for the same child, enter on line 3 the total of the amounts shown on lines 3 and 6 (or corresponding line) of the last form you filed for the child.” Line 4 is “Subtract line 3 from line 2”. Line 6 is “Enter the smaller of line 4 or line 5”.
Line 5 is the expenses line, with a warning printed on the form: “Your qualified adoption expenses may not be equal to the adoption expenses you paid in 2025.” The instructions list the years to include, among them “2024 if the adoption wasn’t final by the end of 2025,” and “2025 if the adoption became final before 2025.”
The special needs rule on line 5
A U.S. child with special needs is handled differently. “If you adopted a U.S. child with special needs and the adoption became final in 2025, enter on line 5:” the $17,280 amount, reduced by prior year expenses used for the same child.
The instructions then give the no prior claim case: “If you didn’t claim any adoption credit for the child in a prior year, enter $17,280 on line 5 even if your qualified adoption expenses for the child were less than $17,280 (and even if you didn’t have any qualified adoption expenses for this child).”
This is a rule for a determination made by a state or an Indian tribal government. “Tribal governments now have parity for special needs adoption determinations.”
Lines 7 to 10: the income phase-out
Line 7 starts from the return. “Enter on line 7 the amount from Form 1040, 1040-SR, or 1040-NR, line 11b, increased by the total of any:” Line 8 asks “Is line 7 more than $259,190?” and if not, the form says “Skip lines 8 and 9, and enter -0- on line 10.”
Line 9 is a decimal: “Divide line 8 by $40,000. Enter the result as a decimal (rounded to at least three places). Do not enter more than 1.000”. Line 10 is “Multiply each amount on line 6 by line 9”.
The 2025 income table in the instructions reads “$259,190 or less won’t affect your credit or exclusion.” “$299,190 or more will eliminate your credit or exclusion.”
Lines 11 to 18: refundable, nonrefundable and carryforward
Line 11b caps the refundable piece for each child: “Enter the smaller of the amount on line 11a or $5,000”. The instructions add that “The refundable credit amount is determined per eligible child.” Line 13 carries the total to Form 1040, line 30.
The nonrefundable credit has a tax liability limit. “Complete the credit limit worksheet to figure the limit of your nonrefundable adoption credit.” Line 18 is “Nonrefundable adoption credit. Enter the smaller of line 16 or line 17 here and on Schedule 3 (Form 1040), line 6c.”
Carryforward is one way only: “Any credit carryforward can only be a nonrefundable credit.” “Unused nonrefundable credit can’t be turned into a refundable credit in a future year.”
The instructions work an example with $20,000 of expenses: “You claim a $5,000 refundable adoption credit on Form 8839, line 13, and on Form 1040, line 30.”
Where to go next
The line 30 credit is discussed on the Form 1040 lines 29, 30 and 31 page. The overview of the whole form is on the Form 8839 instructions page, and the broader credit discussion is on the adoption credit page.
Where this comes from
The editions read for this page are Form 8839 (2025) and the Instructions for Form 8839 (2025), dated Dec 8, 2025, which are the revisions irs.gov served when they were read on 2026-10-19. Check the revision printed on the form you file, because a later revision can change the lines, the dollar limits and the income thresholds. This page describes Form 8839 (2025), Qualified Adoption Expenses; Instructions for Form 8839 (2025), as served on irs.gov on October 19, 2026. The IRS can revise a form after we read it, and the form you file and its own instructions control. Current and earlier revisions are listed on the IRS page Forms, Instructions and Publications. General information, not tax or legal advice.
Common mistakes
- Reading $17,280 as an amount per adoption instead of per child. The instructions say “is $17,280 per child.”
- Assuming the whole credit is refundable. The instructions say “up to $5,000 of the adoption credit is refundable.”
- Expecting a refundable carryforward. The instructions say “Any credit carryforward can only be a nonrefundable credit.”
- Assuming a special needs adoption needs expenses. The instructions say “(and even if you didn’t have any qualified adoption expenses for this child).”
Related: Form 8839 instructions, Form 8839 Part III, Form 1040 lines 29, 30 and 31, adoption credit, and Schedule 1 (Form 1040).
Sources
- Form 8839 (2025), Qualified Adoption Expenses: https://www.irs.gov/pub/irs-pdf/f8839.pdf
- Instructions for Form 8839 (2025): https://www.irs.gov/pub/irs-pdf/i8839.pdf
Read from the IRS pages linked above on October 19, 2026. General information, not tax or legal advice. The IRS form and the instructions for your own form control, and your own facts decide the outcome.