MFJ client shows 2022 W2 Box 12 with a Code T for adoption expenses. However, the client did not adopt a child but instead, had a child through a surrogate parent and the employer provided $10k in benefits to the employee (client). It appears to me that the 10K will appear as income on 1040 Line 1f since the benefits were not used for the intended adoption process. Researching this now but wanted to see if anyone else has run into this situation, and if so, how it was handled.
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Instructions for Form 8839 agree with your conclusion (although they don't mention the line number on which to report the income, but I don't think that matters too much).
Qualified adoption expenses don't include expenses:
For carrying out a surrogate parenting arrangement;"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard
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