How to enter Form 8839 qualified adoption expenses in Lacerte

Before you start:

• In most cases the Married Filing Separate filing status will impact the ability to claim the credit. See Instructions for Form 8839 for full details.
• If the modified AGI is greater then the phase out limit on the 8839 line 8 the credit will not generate.

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.

Follow these steps to generate Form 8839:

1. Go to Screen 37, Adoption Credit (8839).
2. Enter the adopted child's personal information under the Eligible Children section:
   • First and last name
   • ID number (SSN, ATIN, or ITIN)
   • Date of birth
3. Select any of the applicable boxes under the Eligible Children section.
4. Enter the expenses in the appropriate fields under the Qualified Adoption Expenses Paid in subsection.
5. Enter any Prior Year Information, if applicable.

Follow these steps to enter the limited qualified adoption expenses:

1. Go to Screen 37, Adoption Credit (8839).
2. Select the child in the top-left panel under Child.
3. In the subsection Prior Year Information, enter the applicable amount in Limited qualified adoption expenses.
   • If the taxpayer filed a prior year Form 8839 with the adoption of this child, enter the limited qualified adoption expenses from the appropriate line of the Form 8839, in the prior year(s).
   • Limited qualified adoption expenses is the mandatory field to trigger Form 8839, Line 3 to be marked Yes.