Fillable Form 5884 - Work Opportunity Credit

Form 5884 (2011)

Page

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

its tax liability. While any excess is allocated to patrons, any

ending on the hiring date.

credit recapture applies as if the cooperative had claimed

the entire credit.

• $12,000 for a qualified veteran certified as being entitled to

compensation for a service-connected disability and either

If the cooperative is subject to the passive activity rules,

(a) hired not more than 1 year after being discharged or

include on line 3 any work opportunity credit from passive

released from active duty in the U.S. Armed Forces, or (b)

activities disallowed for prior years and carried forward to

began work before November 22, 2011, and was

this year. Complete Form 8810, Corporate Passive Activity

unemployed for a period or periods totaling at least 6

Loss and Credit Limitations, to determine the allowed credit

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

that must be allocated to patrons. For details, see the

ending on the hiring date.

Instructions for Form 8810.

• $14,000 for a qualified veteran who began work after

Estates and trusts. Allocate the work opportunity credit on

line 4 between the estate or trust and the beneficiaries in the

November 21, 2011, and was certified as being unemployed

same proportion as income was allocated and enter the

for a period or periods totaling at least 6 months (whether or

beneficiaries' share on line 5.

not consecutive) in the 1-year period ending on the hiring

date.

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

• $24,000 for a qualified veteran who began work after

include on line 3 any work opportunity credit from passive

November 21, 2011, and was certified as being entitled to

activities disallowed for prior years and carried forward to

compensation for a service-connected disability, and

this year. Complete Form 8582-CR, Passive Activity Credit

unemployed for a period or periods totaling at least 6

Limitations, to determine the allowed credit that must be

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

allocated between the estate or trust and the beneficiaries.

ending on the hiring date.

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

The amount of qualified first-year wages that may be

Paperwork Reduction Act Notice. We ask for the

taken into account for any employee certified as a summer

information on this form to carry out the Internal Revenue

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

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

first-year wages that may be taken into account for an

information. We need it to ensure that you are complying

employee certified as a member of any other targeted

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

group is $6,000.

amount of tax.

Successor employer. For successor employers, the 1- or 2-

You are not required to provide the information requested

year period begins on the date the employee began work for

on a form that is subject to the Paperwork Reduction Act

the previous employer and any qualified first- or second-year

unless the form displays a valid OMB control number. Books

wages paid or incurred by the successor employer are

or records relating to a form or its instructions must be

reduced by the qualified first- or second-year wages paid or

retained as long as their contents may become material in

incurred by the previous employer. See section 51(k)(1) and

the administration of any Internal Revenue law. Generally,

Regulations section 1.51-1(h).

tax returns and return information are confidential, as

A successor employer is an employer that acquires

required by section 6103.

substantially all of the property used in a trade or business

The time needed to complete and file this form will vary

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

depending on individual circumstances. The estimated

employer) and immediately after the acquisition, the

burden for individual taxpayers filing this form is approved

successor employs in his or her trade or business an

under OMB control number 1545-0074 and is included in the

individual who was employed immediately prior to the

estimates shown in the instructions for their individual

acquisition in the trade or business of the previous employer.

income tax return. The estimated burden for all other

Line 2

taxpayers who file this form is shown below.

In general, you must reduce your deduction for salaries

Recordkeeping

. . . . . . . . . .

3 hr., 6 min.

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

Learning about the law

if you cannot take the full credit this year and must carry

or the form . . . . . . . . . . . .

1 hr., 15 min.

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

Preparing and sending

which you figured the credit, reduce the amount

the form to the IRS . . . . . . . . .

2 hr., 34 min.

capitalized by the credit attributable to these costs.

If you have comments concerning the accuracy of these

Line 3

time estimates or suggestions for making this form simpler,

Enter the amount of credit that was allocated to you as a

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

partner, shareholder, patron of a cooperative, or beneficiary.

for the tax return with which this form is filed.

Line 5

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

Form 5884 - Work Opportunity Credit - 2011 Page 3

Related Articles

Related forms

Related Categories