Common questions on Form 8839 Qualified Adoption Expenses in Lacerte

The following articles address frequently asked questions about the adoption credit, Form 8839. More questions can be found below.

• Entering Information for Form 8839 Qualified Adoption Expenses
• Form 8839 Credit for Unsuccessful Adoption
• Entering an Amount on Form 8839 Line 3

What's new for tax year 2025:

• Up to $5,000 of the adoption credit may be refundable.
• Parity for Indian tribal governments. Tribal governments now have parity for special needs adoption determinations. This means that state governments and Indian tribal government determinations of special needs are both recognized for purposes of the adoption credit.
• Maximum credit amount has been increased to $17,280 per eligible child and the modified adjusted gross income amount has been changed.
• For more information, see the IRS instructions here.

Indicating the adoption is for a special needs child

This entry is done in Screen 37, Adoption Credit, with the checkbox titled Special needs adoption that became final in 20YY. Checking that box will check this box of the 8839.

Refer to the F1 tax help for more information.