Fillable Form 8845 - Indian Employment Credit

8845

Indian Employment Credit

OMB No. 1545-1417

2013

Form

Attach to your tax return.

▶

Department of the Treasury

Attachment

Information about Form 8845 and its instructions is at

113

▶

Internal Revenue Service

Sequence No.

Name(s) shown on return

Identifying number

Total of qualified wages and qualified employee health insurance costs paid or incurred during the

tax year

100.00

Calendar year 1993 qualified wages and qualified employee health insurance costs (see

instructions). If none, enter -0- .

Incremental increase. Subtract line 2 from line 1. If zero or less, enter -0- .

100.00

Multiply line 3 by 20% (.20). See instructions for the adjustment you must make to salaries and

wages .

20.00

Indian

employment

credit

from

partnerships,

corporations,

cooperatives,

estates,

and trusts .

Add lines 4 and 5. Cooperatives, estates, and trusts, go to line 7. Partnerships and S corporations,

stop here and report this amount on Schedule K. All others, stop here and report this amount on

Form 3800, line 1g .

20.00

Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust

(see

instructions) .

Cooperatives, estates, and trusts, subtract line 7 from line 6. Report this amount on

Form 3800, line 1g .

20.00

General Instructions

The following are not qualified employees.

• Any individual who bears any of the relationships described in sections

Section references are to the Internal Revenue Code unless otherwise

152(d)(2)(A) through 152(d)(2)(G) to, or is a dependent described in

noted.

section 152(d)(2)(H) of, the employer.

Purpose of Form

• If the employer is a corporation, any individual who bears any of the

relationships described in sections 152(d)(2)(A) through 152(d)(2)(G) to,

Employers of American Indians who are qualified employees use Form

or is a dependent described in section 152(d)(2)(H) of, an individual who

8845 to claim the Indian employment credit.

owns (or is considered to own under section 267(c)) more than 50% in

Taxpayers that are not partnerships, S corporations, cooperatives,

value of the outstanding stock of the corporation.

estates, or trusts, and whose only source of this credit is from those

• If the employer is an estate or trust, any individual who is a grantor,

pass-through entities, are not required to complete or file this form.

beneficiary, or fiduciary of the estate or trust (or a dependent, as

Instead, they can report this credit directly on line 1g of Form 3800.

described in section 152(d)(2)(H), of that individual), or any individual

Definitions

who is a relative, as described in sections 152(d)(2)(A) through 152(d)(2)

(G), of the grantor, beneficiary, or fiduciary of the estate or trust.

Qualified wages means any wages paid or incurred by an employer for

• If the employer is other than a corporation, estate, or trust, any

services performed by an employee while such employee is a qualified

individual who owns directly or indirectly more than 50% of the capital

employee (see below). It does not include wages attributable to services

and profits interest, including constructive ownership, in the entity.

rendered during the 1-year period beginning with the day the employee

starts work for the employer if any portion of such wages is used in

• If the employer is a corporation, any person who owns (or is

figuring the work opportunity credit on Form 5884. Wages has the same

considered to own under section 318) more than 5% of the outstanding

meaning given in section 51.

or voting stock of the employer or, if not a corporate employer, more

than 5% of the capital or profits interest in the employer.

Qualified employee health insurance costs means any amount paid

or incurred by an employer for health insurance coverage for an

• Any individual who performs services involving the conduct of Class I,

employee while the employee is a qualified employee. Do not include

II, or III gaming, as defined in section 4 of the Indian Gaming Regulatory

amounts paid or incurred for health insurance under a salary reduction

Act, and any individual performing any services in a building housing

agreement.

such gaming activity.

Qualified employee means, for any tax period, any employee who

Indian tribe means any Indian tribe, band, nation, pueblo, or other

meets all three of the following tests.

organized group or community, including any Alaska Native village or

regional or village corporation, as defined in, or established under, the

1. The employee is an enrolled member, or the spouse of an enrolled

Alaska Native Claims Settlement Act, that is recognized as eligible for

member, of an Indian tribe. Each tribe determines who qualifies for

the special programs and services provided by the United States to

enrollment and what documentation, if any, is issued as proof of

Indians because of their status as Indians. See the Federal Register

enrollment status. Examples of appropriate documentation will vary

dated October 1, 2010 (75 FR 60810), for the most recent listing of

from one tribe to another and may include a tribal membership card,

federally recognized Indian tribes.

Certified Degree of Indian Blood (CDIB) card, or letter from the tribe or

tribal enrollment office. Employers should retain a copy of the proof of

Indian reservation means a reservation as defined in section 3(d) of

enrollment status provided by the employee.

the Indian Financing Act of 1974 or section 4(10) of the Indian Child

Welfare Act of 1978.

2. Substantially all the services performed by the employee for the

employer are performed within an Indian reservation (defined below).

Early Termination of Employee

3. The employee's principal residence while performing such services

Generally, if the employer terminates a qualified employee less than 1

is on or near the reservation where the services are performed.

year after the date of initial employment, the following rules apply.

However, the employee shall be treated as a qualified employee for

• No wages or qualified employee health insurance costs may be taken

any tax year only if more than 50% of the wages paid or incurred by the

into account for the tax year the employment is terminated.

employer to the employee during the tax year are for services performed

in the employer's trade or business. Each member of a controlled group

• Any credits allowed for prior tax years by reason of wages paid or

must meet this requirement independently. Also, see the instructions for

incurred to that employee must be recaptured. Include the recapture

lines 1 and 2.

amount on the line for recapture taxes on your income tax return. Also,

any carryback or carryover of the credit must be adjusted.

8845

For Paperwork Reduction Act Notice, see instructions.

Form

(2013)

Cat. No. 16146D

Form 8845 - Indian Employment Credit - 2013

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