Fillable Form 8844 - Empowerment Zone Employment Credit

Form 8844 (2012)

Page

Note. Certain farming activities are

Line 1a—Qualified Empowerment

If the cooperative is subject to the

passive activity rules, include on line 3

described in section 2032A(e)(5)(A) or (B).

Zone Wages

any empowerment zone and renewal

Early termination of employee.

Enter the total qualified empowerment

community employment credits from

Generally, an individual is not a qualified

zone wages paid or incurred during the

passive activities disallowed for prior

zone employee unless employed for at

calendar year 2012. The credit must be

years and carried forward to this year.

least 90 days. The 90-day requirement

figured using only the wages that you

Complete Form 8810, Corporate Passive

does not apply in the following

paid or incurred in the calendar year that

Activity Loss and Credit Limitations, to

situations.

ended with or within your tax year. For

determine the allowed credit that must

example, if your tax year began on April

• The employee is terminated because of

be allocated between the cooperative

misconduct as determined under the

1, 2012, and ended on March 31, 2013,

and the patrons. For details see the

you must figure wages based on the

applicable state unemployment

instructions for Form 8810.

calendar year that began on January 1,

compensation law.

Estates and trust. If the estate or trust

2012, and ended on December 31, 2012.

• The employee becomes disabled

is subject to the passive activity rules,

Wages paid after the end of the calendar

before the 90th day. However, if the

include on line 3 any empowerment zone

year may be used only to figure the

disability ends before the 90th day, the

and renewal community employment

credit claimed on the following year’s tax

employer must offer to reemploy the

credits from passive activities disallowed

return.

former employee.

for prior years and carried forward to this

Qualified empowerment zone wages

An employee is not treated as

year. Complete Form 8582-CR, Passive

are qualified wages paid or incurred by

terminated if the corporate employer is

Activity Credit Limitations, to determine

an employer for services performed by

acquired by another corporation under

the allowed credit that must be allocated

an employee while the employee is a

section 381(a) and the employee

between the estate or trust and the

qualified empowerment zone employee

continues to be employed by the

beneficiaries. For details, see the

(defined earlier). The maximum wages

acquiring corporation. Nor is a mere

instructions for Form 8582-CR.

that may be taken into account for each

change in the form of conducting the

employee is limited to $15,000. The

Paperwork Reduction Act Notice. We

trade or business treated as a

$15,000 amount for any employee is

ask for the information on this form to

termination if the employee continues to

reduced by the amount of wages paid or

carry out the Internal Revenue laws of

be employed in such trade or business

incurred during the calendar year on

the United States. You are required to

and the taxpayer retains a substantial

behalf of that employee that are used in

give us the information. We need it to

interest therein.

figuring the work opportunity credit

ensure that you are complying with these

Wages

(Form 5884).

laws and to allow us to figure and collect

the right amount of tax.

Wages are defined in section 51(c) and

Line 2

generally are wages (excluding tips)

You are not required to provide the

In general, you must reduce your

subject to the Federal Unemployment

information requested on a form that is

deduction for salaries and wages and

Tax Act (FUTA), without regard to the

subject to the Paperwork Reduction Act

certain educational and training costs by

FUTA dollar limitation. The following are

unless the form displays a valid OMB

the line 2 credit amount. You must make

also treated as wages.

control number. Books or records

this reduction even if you cannot take

relating to a form or its instructions must

• Amounts paid or incurred by the

the full credit this year because of the

be retained as long as their contents

employer as educational assistance

tax liability limit. If you capitalized any

may become material in the

payments excludable from the

costs on which you figured the credit,

administration of any Internal Revenue

employee’s gross income under section

reduce the amount capitalized by the

law. Generally, tax returns and return

127. However, this does not apply if the

amount of the credit attributable to these

information are confidential, as required

employee has a relationship to the

costs.

by section 6103.

employer described in section 267(b) or

Members of a controlled group of

707(b)(1) (substituting “10 percent” for

The time needed to complete and file

corporations and businesses under

“50 percent” in those sections) or the

this form will vary depending on

common control are treated as a single

employer and employee are engaged in

individual circumstances. The estimated

employer in determining the credit. The

trades or businesses under common

burden for individual taxpayers filing this

members share the credit in the same

control (within the meaning of sections

form is approved under OMB control

proportion that they paid or incurred

52(a) and (b)).

number 1545-0074 and is included in the

qualifying wages.

estimates shown in the instructions for

• Amounts paid or incurred by the

Line 5

their individual income tax return. The

employer on behalf of an employee

estimated burden for all other taxpayers

Cooperatives. A cooperative described

under age 19 for a youth training

who file this form is shown below.

in section 1381(a) must allocate to its

program operated by that employer in

Recordkeeping .

4 hr., 4 min.

patrons the credit in excess of its tax

conjunction with local education officials.

liability limit. Therefore, to figure the

Learning about the

Specific Instructions

unused amount of the credit allocated to

law or the form .

. 2 hr., 22 min.

patrons, the cooperative must first figure

Preparing and sending

Complete lines 1 and 2 to figure the

its tax liability. While any excess is

the form to the IRS

. 2 hr., 33 min.

current year credit for your trade or

allocated to patrons, any credit

If you have comments concerning the

business. Skip lines 1 and 2 if you are

recapture applies as if the cooperative

accuracy of these time estimates or

only claiming a credit that was allocated

had claimed the entire credit.

suggestions for making this form

to you from a pass-through entity.

simpler, we would be happy to hear from

you. See the instructions for the tax

return with which this form is filed.

Form 8844 - Empowerment Zone Employment Credit - 2012 Page 3

Related Articles

Related forms

Related Categories