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

2009

CREDIT FOR EDUCATIONAL OPPORTUNITY

WORKSHEET INSTRUCTIONS FOR EMPLOYERS

SPECIFIC INSTRUCTIONS (continued)

Line 8. Enter on line 8 the total amount of eligible education loan payments paid by you, the employer, during your tax

year beginning in 2009. For a deﬁ nition of eligible education loan payments, see the General Instructions above. You

may include on this line only those payments made on behalf of the qualiﬁ ed employee during the employee’s term of em-

ployment. An employee’s term of employment includes those periods the employee was actually employed by you, includ-

ing periods of leave and vacation. For employers that customarily operate during a regularly recurring period of 9 months

or more in a calendar year, the term of employment extends to the full tax year with respect to a qualiﬁ ed employee. For

employers that customarily operate during a regularly recurring period of less than 9 months in a calendar year, including

seasonal employers, the term of employment extends only to time periods the qualiﬁ ed employee was actually working for

you during your tax year.

Line 11. This line is used to determine your portion of the available credit. Divide line 8 by line 2b. Enter the result as

a decimal carried out 4 places (example, $25/$100 = 0.2500). If lines 8 and 2b are equal, enter the decimal amount as

1.0000.

Line 13. If the qualiﬁ ed employee worked for you an average of less than 32 hours per week during your tax year, enter

0.5000 on this line. Otherwise, enter 1.0000. Note: You cannot claim a credit for an employee that does not work for

you at least an average of 16 hours weekly during the tax year.

Line 14. Pass-through entities must provide each shareholder, partner, member, etc., a copy of the credit worksheet(s)

completed and a schedule showing the assignment/distribution of the credit to each owner. The assignment/distribution

must be based on ownership interest in the entity. If multiple worksheets are completed, the employer may aggregate the

credit amount of all worksheets for purposes of completing the schedule of assignment/distribution. The schedule must also

include the name, address and federal ID number of the pass-through entity, and the name and SSN/EIN of each partner,

shareholder, member, etc. Owners claiming the credit must attach a copy of the credit worksheet(s) and schedule of as-

signment/distribution.

Line 15.

The credit on line 14 is limited to the tax liability of the taxpayer, but unused credit amounts may be carried for-

ward for up to 10 tax years. If you are unable to use the entire credit amount on line 14 because of this limitation on Form

1120ME, Schedule C (C corporations) or the limitation on Form 1040ME, Schedule A (sole proprietors and other individual

taxpayers), report the unused portion on this line and keep for your records.

Rev. 11/09

2009 Credit For Educational Opportunity Worksheet Instructions For Employers Page 3