Form 8845 - Indian Employment Credit - 2000 (Page 3 of 3) in pdf

Form 8845 (2000)

Page

● The total amount of qualified wages and qualified

● Work opportunity (Form 5884).

employee health insurance costs for each qualified employee

● Welfare-to-work (Form 8861).

for any tax year is limited to $20,000.

● Alcohol used as fuel (Form 6478).

● Members of a controlled group of corporations and

● Research (Form 6765).

businesses under common control are treated as a single

● Low-income housing (Form 8586).

employer in determining the credit.

● Enhanced oil recovery (Form 8830).

Line 1

● Disabled access (Form 8826).

Enter the total qualified wages and qualified employee health

● Renewable electricity production (Form 8835).

insurance costs paid or incurred for qualified employees

● Indian employment (Form 8845).

during the tax year.

● Employer social security and Medicare taxes paid on

Line 2

certain employee tips (Form 8846).

● Orphan drug (Form 8820).

Enter the total qualified wages and qualified employee health

● Contributions to selected community development

insurance costs paid or incurred by the employer (or

predecessor) for qualified employees during calendar year

corporations (Form 8847).

1993 (as if section 45A had been in effect during 1993). If

● Trans-Alaska pipeline liability fund.

none, enter zero.

The empowerment zone employment credit, while a

For a short tax year, multiply the amount determined

component of the general business credit, is figured

above by a fraction, the numerator of which is the number of

separately on Form 8844 and is never carried to Form 3800.

days in the short tax year and the denominator of which is

365. Enter the result on line 2.

Part II—Tax Liability Limit

Line 4

Line 12

In most cases, you must reduce the deductions on your

Although you may not owe alternative minimum tax (AMT),

return for salaries and wages and health insurance costs by

you generally must still compute the tentative minimum tax

the line 4 credit amount. This reduction must be made even

(TMT) to figure your credit. For a small corporation exempt

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

from the AMT under section 55(e), enter zero. Otherwise,

liability limit. If you capitalized any costs on which you

complete and attach the applicable AMT form or schedule

figured the credit, reduce the amount capitalized by the

and enter the TMT on line 12.

amount of the credit attributable to these costs.

Line 14

Line 6

See section 38(c)(3) for special rules that apply to married

If you have a credit from a passive activity, stop here and go

couples filing separate returns, controlled corporate groups,

to Form 3800.

regulated investment companies, real estate investment

S corporations and partnerships. Allocate the line 6 credit

trusts, and estates and trusts.

among the shareholders or partners. Attach Form 8845 to

Line 17

Form 1120S or 1065 and show the credit for each

shareholder or partner on Schedule K-1. Electing large

If you cannot use all of the credit because of the tax liability

partnerships, include this credit in “general credits.”

limit (line 16 is smaller than line 6), carry the excess credit

Estates and trusts. The line 6 credit is allocated between

back 1 year and then forward for 20 years. See the separate

the estate or trust and the beneficiaries in proportion to the

Instructions for Form 3800 for details.

income allocable to each. On the dotted line to the left of the

amount on line 6, the estate or trust should enter its part of

Paperwork Reduction Act Notice. We ask for the

the total Indian employment credit. Label it “1041 Portion”

information on this form to carry out the Internal Revenue

and use this amount in Part II (or on Form 3800, if required)

laws of the United States. You are required to give us the

to figure the credit to claim on Form 1041.

information. We need it to ensure that you are complying

Cooperatives. Most tax-exempt organizations cannot take

with these laws and to allow us to figure and collect the right

the Indian employment credit, but a cooperative described in

amount of tax.

section 1381(a) takes the Indian employment credit to the

You are not required to provide the information requested

extent it has tax liability. Any excess is shared among its

on a form that is subject to the Paperwork Reduction Act

patrons. But any credit recapture under item 2 of Early

unless the form displays a valid OMB control number. Books

Termination of Employee applies as if the cooperative had

or records relating to a form or its instructions must be

claimed the entire credit and had not shared it among its

retained as long as their contents may become material in

patrons.

the administration of any Internal Revenue law. Generally, tax

Who Must File Form 3800

returns and return information are confidential, as required by

section 6103.

Complete Form 3800, General Business Credit, instead of

The time needed to complete and file this form will vary

completing Part II of Form 8845 to figure the tax liability limit

depending on individual circumstances. The estimated

for the credit if for this year you have:

average time is:

● More than one of the credits included in the general

Recordkeeping

7 hr., 39 min.

business credit listed below,

Learning about the law

● A carryback or carryforward of any of the credits,

or the form

1 hr., 40 min.

● A credit from a passive activity, or

Preparing and sending

● General credits from an electing large partnership

the form to the IRS

1 hr., 53 min.

(Schedule K-1 (Form 1065-B)).

If you have comments concerning the accuracy of these

The general business credit consists of the following

time estimates or suggestions for making this form simpler,

credits.

we would be happy to hear from you. See the instructions

● Investment (Form 3468).

for the tax return with which this form is filed.

Form 8845 - Indian Employment Credit - 2000 Page 3

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