Fillable Form 8845 - Indian Employment Credit

Form 8845 (2013)

Page

These rules do not apply if:

If the cooperative is subject to the passive activity rules, include on

line 5 any Indian employment credit from passive activities disallowed

• The employee voluntarily quits,

for prior years and carried forward to this year. Complete Form 8810,

• The employee is terminated because of misconduct, or

Corporate Passive Activity Loss and Credit Limitations, to determine the

• The employee becomes disabled. However, if the disability ends

allowed credit that can be allocated to patrons. For details, see the

during the first year of employment, the employer must offer

Instructions for Form 8810.

reemployment to that employee.

Estates and trusts. Allocate the Indian employment credit on line 6

An employee is not treated as terminated if the corporate employer is

between the estate or trust and the beneficiaries in the same proportion

acquired by another corporation covered under the rules in section

as income was allocated and enter the beneficiaries' share on line 7.

381(a) and the employee continues to be employed by the acquiring

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

corporation. Nor is a mere change in the form of conducting the trade or

line 5 any Indian employment credit from passive activities disallowed

business treated as a termination if the employee continues to be

for prior years and carried forward to this year. Complete Form 8582-

employed in such trade or business and the taxpayer retains a

CR, Passive Activity Credit Limitations, to determine the allowed credit

substantial interest in such trade or business.

that must be allocated between the estate or trust and the beneficiaries.

For details, see the Instructions for Form 8582-CR.

Member of Controlled Group or Business Under

Common Control

Paperwork Reduction Act Notice. We ask for the information on this

For purposes of figuring the credit, all members of a controlled group of

form to carry out the Internal Revenue laws of the United States. You

corporations (as defined in section 52(a)) and all members of a group of

are required to give us the information. We need it to ensure that you are

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

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

treated as a single employer. As a member, compute your credit based

amount of tax.

on your proportionate share of qualified wages and qualified employee

You are not required to provide the information requested on a form

health insurance costs giving rise to the group's Indian employment

that is subject to the Paperwork Reduction Act unless the form displays

credit. Enter your share of the credit on line 4. Attach a statement

a valid OMB control number. Books or records relating to a form or its

showing how your share of the credit was figured, and write “See

instructions must be retained as long as their contents may become

Attached” next to the entry space for line 4.

material in the administration of any Internal Revenue law. Generally, tax

returns and return information are confidential, as required by section

Specific Instructions

6103.

Figure the credit for your trade or business on lines 1 through 4. The

The time needed to complete and file this form will vary depending on

following rules apply for lines 1 and 2.

individual circumstances. The estimated burden for individual taxpayers

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

• The total amount of qualified wages and qualified employee health

is included in the estimates shown in the instructions for their individual

insurance costs for each qualified employee for any tax year is limited to

income tax return. The estimated burden for all other taxpayers who file

$20,000.

this form is shown below.

• For a short tax year, multiply the wages limit by the number of days in

Recordkeeping

2 hr., 23 min.

the short tax year and divide the result by 365.

Learning about the law

Line 1

or the form

1 hr., 23 min.

Enter the total qualified wages and qualified employee health insurance

Preparing and sending

costs paid or incurred for qualified employees during the tax year. An

the form to the IRS .

1 hr., 29 min.

employee is not a qualified employee if the total amount of wages paid

If you have comments concerning the accuracy of these time

or incurred by the employer to the employee during the tax year

estimates or suggestions for making this form simpler, we would be

(whether or not for services within an Indian reservation) exceeds

happy to hear from you. See the instructions for the tax return with

$45,000.

which this form is filed.

Line 2

Enter the total qualified wages and qualified employee health insurance

costs paid or incurred by the employer (or predecessor) for qualified

employees during calendar year 1993 (as if section 45A had been in

effect during 1993). If none, enter zero. For this purpose, an employee is

not a qualified employee if the total amount of wages paid or incurred by

the employer to the employee during calendar year 1993 (whether or not

for services within an Indian reservation) exceeds $30,000.

Line 4

Generally, you must reduce the deductions on your return for salaries

and wages and health insurance costs by the credit on line 4, even if

you cannot take the full credit this year because of the tax liability limit.

If you capitalized any costs on which you figured the credit, reduce the

amount capitalized by the credit attributable to these costs.

Line 7

Cooperatives. A cooperative described in section 1381(a) must allocate

to its patrons the credit in excess of its tax liability limit. Therefore, to

figure the unused amount of the credit allocated to patrons, the

cooperative must first figure its tax liability. While any excess is

allocated to patrons, any credit recapture applies as if the cooperative

had claimed the entire credit.

Form 8845 - Indian Employment Credit - 2013 Page 2

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