Instructions For Form 8844 - Empowerment Zone Employment Credit

you figured the credit, reduce the amount capitalized by

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

the amount of the credit attributable to these costs.

of the credit allocated to patrons, the cooperative must

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

Members of a controlled group of corporations and

patrons, any credit recapture applies as if the cooperative

businesses under common control are treated as a single

had claimed the entire credit.

employer in determining the credit. The members share

the credit in the same proportion that they paid or incurred

If the cooperative is subject to the passive activity rules,

qualifying wages.

include on line 3 any empowerment zone and renewal

community employment credits from passive activities

Line 3

disallowed for prior years and carried forward to this year.

Enter total empowerment zone employment credits from:

Complete Form 8810, Corporate Passive Activity Loss

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

and Credit Limitations, to determine the allowed credit that

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

must be allocated between the cooperative and the

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

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

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

Estates and trusts. Allocate the empowerment zone

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

employment credit on line 4 between the estate or trust

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

and the beneficiaries in the same proportion as income

Form 1099-PATR, Taxable Distributions Received

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

From Cooperatives, box 10, or other notice of credit

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

allocation.

include on line 3 any empowerment zone and renewal

Partnerships and S corporations must always report the

community employment credits from passive activities

above credits on line 3. Also, estates and trusts that can

disallowed for prior years and carried forward to this year.

allocate the above credits to beneficiaries and

Complete Form 8582-CR, Passive Activity Credit

cooperatives that can allocate the above credits to

Limitations, to determine the allowed credit that must be

patrons must always report these credits on line 3. All

allocated between the estate or trust and the

other filers figuring a separate credit on earlier lines must

beneficiaries. For details, see the Instructions for Form

also report the above credits on line 3. All others not using

8582-CR.

earlier lines to figure a separate credit can report the

above credits directly on Form 3800, Part III, line 3.

Line 5

Cooperatives. A cooperative described in section

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

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 and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123

and is included in the estimates shown in the instructions for their individual and business 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 (2016)

Instructions For Form 8844 - Empowerment Zone Employment Credit - 2016 Page 3

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