Form 8839 line 31, taxable benefits.

Reference table

Both branches

The form asks: is line 30 more than line 23? If not, subtract line 30 from line 23, and include that amount on line 1f of Form 1040, 1040-SR or 1040-NR if it is more than zero. If so, subtract line 23 from line 30 and enter the result as a negative number, also on line 1f.

Why it can differ from line 23

Line 23 is the total of benefits received in 2025. Line 30 is the total you can exclude after the $17,280 per-child limit, any prior-year benefits and the income phaseout. Anything above the excluded amount is taxed as wages through line 1f.

Prior-year benefits

The instructions include a worksheet for the case where you enter benefits received in 2025 and in all prior years on line 22: you complete the form through line 30 and then use the worksheet to work out the prior-year exclusion and the taxable benefits for line 31.

Worked example

You received $20,000 in employer benefits (line 23) and the excluded amount (line 30) is $17,280. Line 30 is not more than line 23, so line 31 is $2,720, and you also include $2,720 on Form 1040 line 1f. If line 23 were $10,000 and line 30 were $17,280, line 31 would be -$7,280. Figures are illustrative.

Limits of this page

It subtracts the two totals as the form shows. It does not compute line 30 or complete the prior-year worksheet. Tax on the amount depends on your return.

Sources

• Instructions for Form 8839 (2025): Line-by-line instructions, worksheets and limits. Read November 2, 2026.
• Form 8839 (2025): The form itself, for exact line wording. Read November 2, 2026.

These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.