Fillable Form 5884 - Work Opportunity Credit

Form 5884 (2013)

Page

$24,000 for a qualified veteran certified as being entitled

If the cooperative is subject to the passive activity rules,

•

to compensation for a service-connected disability, and

include on line 3 any work opportunity credit from passive

unemployed for a period or periods totaling at least 6

activities disallowed for prior years and carried forward to

months (whether or not consecutive), in the 1-year period

this year. Complete Form 8810, Corporate Passive

ending on the hiring date.

Activity Loss and Credit Limitations, to determine the

allowed credit that must be allocated to patrons. For

The amount of qualified first-year wages that may be

details, see the Instructions for Form 8810.

taken into account for any employee certified as a

summer youth employee is limited to $3,000. The amount

Estates and trusts. Allocate the work opportunity credit

of qualified first-year wages that may be taken into

on line 4 between the estate or trust and the beneficiaries

account for an employee certified as a member of any

in the same proportion as income was allocated and

other targeted group is $6,000.

enter the beneficiaries' share on line 5.

Successor employer. For successor employers, the 1-

If the estate or trust is subject to the passive activity

or 2-year period begins on the date the employee began

rules, include on line 3 any work opportunity credit from

work for the previous employer and any qualified first- or

passive activities disallowed for prior years and carried

second-year wages paid or incurred by the successor

forward to this year. Complete Form 8582-CR, Passive

employer are reduced by the qualified first- or second-

Activity Credit Limitations, to determine the allowed credit

year wages paid or incurred by the previous employer.

that must be allocated between the estate or trust and

See section 51(k)(1) and Regulations section 1.51-1(h).

the beneficiaries. For details, see the Instructions for

Form 8582-CR.

A successor employer is an employer that acquires

substantially all of the property used in a trade or

Paperwork Reduction Act Notice. We ask for the

business (or a separate unit thereof) of another employer

information on this form to carry out the Internal Revenue

(the previous employer) and immediately after the

laws of the United States. You are required to give us the

acquisition, the successor employs in his or her trade or

information. We need it to ensure that you are complying

business an individual who was employed immediately

with these laws and to allow us to figure and collect the

prior to the acquisition in the trade or business of the

right amount of tax.

previous employer.

You are not required to provide the information

Line 2

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

In general, you must reduce your deduction for salaries

control number. Books or records relating to a form or its

and wages by the amount on line 2. This is required even

instructions must be retained as long as their contents

if you cannot take the full credit this year and must carry

may become material in the administration of any Internal

part of it back or forward. If you capitalized any costs on

Revenue law. Generally, tax returns and return

which you figured the credit, reduce the amount

information are confidential, as required by section 6103.

capitalized by the credit attributable to these costs.

Line 3

The time needed to complete and file this form will vary

depending on individual circumstances. The estimated

Enter the amount of credit that was allocated to you as a

burden for individual taxpayers filing this form is approved

partner, shareholder, patron of a cooperative, or

under OMB control number 1545-0074 and is included in

beneficiary.

the estimates shown in the instructions for their individual

Line 5

income tax return. The estimated burden for all other

taxpayers who file this form is shown below.

Cooperatives. A cooperative described in section

1381(a) must allocate to its patrons the credit in excess of

Recordkeeping . . . . . . . . . .

3 hr., 6 min.

its tax liability limit. Therefore, to figure the unused

Learning about the law

amount of the credit allocated to patrons, the cooperative

or the form

. . . . . . . . . . . 1 hr., 15 min.

must first figure its tax liability. While any excess is

Preparing and sending

allocated to patrons, any credit recapture applies as if the

the form to the IRS

. . . . . . . . 2 hr., 34 min.

cooperative had claimed the entire credit.

If you have comments concerning the accuracy of these

time estimates or suggestions for making this form

simpler, we would be happy to hear from you. See the

instructions for the tax return with which this form is filed.

Form 5884 - Work Opportunity Credit - 2013 Page 3

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