Instructions For Form 8844 - Empowerment Zone Employment Credit

Line 2

Line 5

In general, you must reduce your deduction for salaries

Cooperatives. A cooperative described in section

and wages and certain educational and training costs by

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

the line 2 credit amount. You must make this reduction

its tax liability limit. Therefore, to figure the unused amount

even if you cannot take the full credit this year because of

of the credit allocated to patrons, the cooperative must

the tax liability limit. If you capitalized any costs on which

first figure its tax liability. While any excess is allocated to

you figured the credit, reduce the amount capitalized by

patrons, any credit recapture applies as if the cooperative

the amount of the credit attributable to these costs.

had claimed the entire credit.

Members of a controlled group of corporations and

If the cooperative is subject to the passive activity rules,

businesses under common control are treated as a single

include on line 3 any empowerment zone and renewal

employer in determining the credit. The members share

community employment credits from passive activities

the credit in the same proportion that they paid or incurred

disallowed for prior years and carried forward to this year.

qualifying wages.

Complete Form 8810, Corporate Passive Activity Loss

Line 3

and Credit Limitations, to determine the allowed credit that

must be allocated between the cooperative and the

Enter total empowerment zone employment credits from:

patrons. For details, see the Instructions for Form 8810.

Schedule K-1 (Form 1065), Partner's Share of Income,

Estates and trusts. Allocate the empowerment zone

Deductions, Credits, etc., box 15 (code L);

employment credit on line 4 between the estate or trust

Schedule K-1 (Form 1120S), Shareholder's Share of

and the beneficiaries in the same proportion as income

Income, Deductions, Credits, etc., box 13 (code L);

was allocated and enter the beneficiaries' share on line 5.

Schedule K-1 (Form 1041), Beneficiary's Share of

If the estate or trust is subject to the passive activity rules,

Income, Deductions, Credits, etc., box 13 (code K); and

include on line 3 any empowerment zone and renewal

Form 1099-PATR, Taxable Distributions Received

community employment credits from passive activities

From Cooperatives, box 10.

disallowed for prior years and carried forward to this year.

Partnerships and S corporations must always report the

Complete Form 8582-CR, Passive Activity Credit

above credits on line 3. All other filers figuring a separate

Limitations, to determine the allowed credit that must be

credit on earlier lines must also report the above credits

allocated between the estate or trust and the

on line 3. All others not using earlier lines to figure a

beneficiaries. For details, see the Instructions for Form

separate credit can report the above credits directly on

8582-CR.

Form 3800, Part III, line 3.

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the

United States. You are required to give us the information. We need it to ensure that you are complying with these laws

and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act

unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be

retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden

for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the

estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers

who file this form is shown below.

Recordkeeping

4 hr., 4 min.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Learning about the law or the form

2 hr., 22 min.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Preparing and sending the form to the IRS

2 hr., 33 min.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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.

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Instructions for Form 8844 (2014)

Instructions For Form 8844 - Empowerment Zone Employment Credit - 2014 Page 3

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