Instructions For Form 5884 Work Opportunity Credit

50% or less of the wages the employee received from

$12,000 for a qualified veteran certified as being

you were for working in your trade or business.

entitled to compensation for a service-connected disability

and hired not more than 1 year after being discharged or

Qualified wages do not include:

released from active duty in the U.S. Armed Forces.

Wages paid to or incurred for any employee during any

$14,000 for a qualified veteran certified as being

period for which you received payment for the employee

unemployed for a period or periods totaling at least 6

from a federally funded on-the-job training program;

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

Wages paid to or incurred for a summer youth

ending on the hiring date.

employee for services performed while the employee lived

$24,000 for a qualified veteran certified as being

outside an empowerment zone;

entitled to compensation for a service-connected

Wages paid to or incurred for a designated community

disability, and unemployed for a period or periods totaling

resident for services performed while the employee lived

at least 6 months (whether or not consecutive), in the

outside an empowerment zone or rural renewal county;

1-year period ending on the hiring date.

Wages paid to or incurred for services performed by a

summer youth employee before or after any 90-day period

The amount of qualified first-year wages that may be

between May 1 and September 15; and

taken into account for any employee certified as a

Wages for services of replacement workers during a

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

strike or lockout.

of qualified first-year wages that may be taken into

account for an employee certified as a member of any

Member of Controlled Group or

other targeted group is $6,000.

Business Under Common Control

Successor employer. For successor employers, the 1-

For purposes of figuring the credit, all members of a

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

controlled group of corporations (as defined in section

work for the previous employer and any qualified first- or

52(a)) and all members of a group of businesses under

second-year wages paid or incurred by the successor

common control (as defined in section 52(b)), are treated

employer are reduced by the qualified first- or

as a single taxpayer. As a member, figure your credit

second-year wages paid or incurred by the previous

based on your proportionate share of qualified wages

employer. See section 51(k)(1) and Regulations section

giving rise to the group’s work opportunity credit. Enter

1.51-1(h).

your share of the credit on line 2. Attach a statement

A successor employer is an employer that acquires

showing how your share of the credit was figured, and

substantially all of the property used in a trade or business

enter “See attached” next to the entry space for line 2.

(or a separate unit thereof) of another employer (the

previous employer) and immediately after the acquisition,

Specific Instructions

the successor employs in his or her trade or business an

individual who was employed immediately prior to the

Current Year Credit

acquisition in the trade or business of the previous

employer.

Lines 1a, 1b, and 1c

Line 2

Enter on the applicable line and multiply by the

In general, you must reduce your deduction for salaries

percentage shown the total qualified first- or second-year

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

wages paid to or incurred for employees who are

if you can't take the full credit this year and must carry part

members of a targeted group. Qualified first-year wages

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

are qualified wages you paid to or incurred for work

you figured the credit, reduce the amount capitalized by

performed during the 1-year period beginning on the date

the credit attributable to these costs.

the individual begins work for you. Qualified second-year

wages are qualified wages you paid to or incurred for

Line 3

certified long-term family assistance recipients for work

Enter total work opportunity credits from:

performed during the 1-year period beginning on the day

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

after the last day of the 1-year wage period.

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

The amount of qualified first-year wages and the

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

amount of qualified second-year wages that may be taken

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

into account for any employee certified as a long-term

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

family assistance recipient is limited to $10,000 per year.

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

The amount of qualified first-year wages that may be

Form 1099-PATR, Taxable Distributions Received

taken into account for an employee certified as a qualified

From Cooperatives, box 8, or other notice of credit

veteran is limited to the following amounts.

allocation.

$6,000 for a qualified veteran certified as being either

Partnerships, S corporations, cooperatives, estates,

(a) a member of a family receiving SNAP assistance (food

and trusts must always report the above credits on line 3.

stamps) for at least a 3-month period during the 15-month

All other filers figuring a separate credit on earlier lines

period ending on the hiring date, or (b) unemployed for a

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

period or periods totaling at least 4 weeks (whether or not

using earlier lines to figure a separate credit can report the

consecutive) but less than 6 months in the 1-year period

above credits directly on Form 3800, Part III, line 4b.

ending on the hiring date.

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Instructions for Form 5884 (2015)

Instructions For Form 5884 Work Opportunity Credit - 2015 Page 2

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