2009 Credit For Educational Opportunity Worksheet Instructions For Employers (Page 2 of 3) in pdf

2009

CREDIT FOR EDUCATIONAL OPPORTUNITY

WORKSHEET INSTRUCTIONS FOR EMPLOYERS

SPECIFIC INSTRUCTIONS

Enter employer name and EIN in the spaces provided. Indicate the entity type by checking the box that applies.

Also enter the qualiﬁ ed employee name and SSN and the Maine location from which the qualiﬁ ed employee worked

during your tax year.

Note: A separate credit worksheet must be completed for each qualiﬁ ed employee for whom you (the employer)

made an eligible education loan payment.

In the case of employers that are pass-through entities (S corporations, partnerships, LLCs, etc.), the shareholders, part-

ners, members, etc., are allowed a Credit for Educational Opportunity in proportion to their respective interest in these enti-

ties. Pass-through entities must complete the worksheet in the same manner as other employers in order to calculate the

credit amount. However, see speciﬁ c instructions for line 15 regarding employer reporting requirements and how the credit

may be claimed by owners.

Line 1. Enter the monthly Benchmark Loan Payment amount. This amount is stated in the qualiﬁ ed employee’s Student

Opportunity Contract.

Line 2. Enter the monthly eligible education loan payment amount due during your tax year beginning in 2009. This is the

amount required to be paid to the lender each month, whether or not the amount was paid, and regardless of whether the

amount was paid by the qualiﬁ ed employee, the qualiﬁ ed employee’s employers or anyone else.

Line 2a. Calculate the annual amount of eligible education loan payments due during your tax year beginning in 2009.

Multiply the amount you entered on line 2 by the number of monthly payments required to be made during your tax year,

whether or not the amount was paid, and regardless of whether the amount was paid by the qualiﬁ ed employee, the qualiﬁ ed

employee’s employers or someone else. For example, if the qualiﬁ ed employee and the qualiﬁ ed employee’s employers

were required to make 6 monthly payments of $250 each on the eligible education loan during your tax year beginning in

2009, multiply 6 by $250 and enter the result ($1,500) in the space provided.

Line 2b. Calculate the annual amount of eligible education loan payments actually made during your tax year by the quali-

ﬁ ed employee, the qualiﬁ ed employee’s employers and/or anyone else. For example, if the employee was required to make

6 monthly payments of $250 each on the eligible education loan during your tax year beginning in 2009, but only 5 monthly

payments were made, multiply 5 by $250 and enter the result ($1,250) in the space provided.

Note: If line 2b is more than line 2a, it means that payments on the eligible education loans were accelerated dur-

ing the tax year. An employer is not eligible to claim the credit if the education loan payments are in any way ac-

celerated. If this has occurred, do not complete the worksheet and do not ﬁ le a copy of the worksheet with your

return. You also will not qualify for the Credit for Educational Opportunity in any future tax year with respect to

this employee.

If line 2b is equal to or less than line 2a, complete the remainder of the worksheet. Also, to support amounts en-

tered on lines 2a and 2b, provide documentation from each lender showing the monthly payments due and the

monthly payments actually made during your tax year beginning in 2009. You should obtain this documentation

from the qualiﬁ ed employee.

Line 4. Enter the percentage of coursework completed from the qualiﬁ ed employee’s Student Opportunity Contract. Enter

the amount as a decimal (for example, enter 25% as 0.2500). Enter 100% as 1.0000.

Line 6. With respect to that period of your tax year beginning in 2009 that the qualiﬁ ed employee was a resident of Maine

working from your location in Maine, enter the number of months you, the qualiﬁ ed employee and/or anyone else made eli-

gible education loan payments. For example, if the qualiﬁ ed employee graduated May 2009 and 6 monthly education loan

payments were made beginning July 1, 2009, but the employee did not start working for a Maine employer until August 1,

2009, enter 5 on line 6. In this example, there are only 5 months that the qualiﬁ ed employee met all of the requirements. If

in this example the qualiﬁ ed employee had started working for a Maine employer on July 1, 2009, you would have entered

6 on line 6.

Rev. 11/09

2009 Credit For Educational Opportunity Worksheet Instructions For Employers Page 2

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