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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
account for an employee certified as a member of any Partnerships, S corporations, cooperatives, estates,
other targeted group is $6,000. and trusts report the above credits on line 3. All other filers
figuring a separate credit on earlier lines also report the
Successor employer. For successor employers, the 1-
above credits on line 3. All others not using earlier lines to
or 2-year period begins on the date the employee began
figure a separate credit can report the above credits
work for the previous employer and any qualified first- or
directly on Form 3800, Part III, line 4b.
second-year wages paid or incurred by the successor
employer are reduced by the qualified first- or Line 5
second-year wages paid or incurred by the previous
employer. See section 51(k)(1) and Regulations section Cooperatives. A cooperative described in section
1.51-1(h). 1381(a) must allocate to its patrons the credit in excess of
A successor employer is an employer that acquires its tax liability limit. Therefore, to figure the unused amount
substantially all of the property used in a trade or business of the credit allocated to patrons, the cooperative must
(or a separate unit thereof) of another employer (the first figure its tax liability. While any excess is allocated to
previous employer) and immediately after the acquisition, patrons, any credit recapture applies as if the cooperative
the successor employs in his or her trade or business an had claimed the entire credit.
employee who was employed immediately prior to the If the cooperative is subject to the passive activity rules,
acquisition in the trade or business of the previous include on line 3 any Form 5884 credit from passive
employer. activities disallowed for prior years and carried forward to
this year. Complete Form 8810, Corporate Passive
Line 2 Activity Loss and Credit Limitations, to determine the
In general, you must reduce your deduction for salaries allowed credit that must be allocated to patrons. For
and wages by the amount on line 2. This is required even details, see the Instructions for Form 8810.
if you can't take the full credit this year and must carry part Estates and trusts. Allocate the work opportunity credit
of it back or forward. If you capitalized any costs on which on line 4 between the estate or trust and the beneficiaries
you figured the credit, reduce the amount capitalized by in the same proportion as income was allocated and enter
the credit attributable to these costs. the beneficiaries' share on line 5.
Line 3 If the estate or trust is subject to the passive activity
rules, include on line 3 any Form 5884 credit from passive
Enter total work opportunity credits from:
activities disallowed for prior years and carried forward to
• Schedule K-1 (Form 1065), Partner's Share of Income,
this year. Complete Form 8582-CR, Passive Activity
Deductions, Credits, etc., box 15 (code J);
Credit Limitations, to determine the allowed credit that
• Schedule K-1 (Form 1120-S), Shareholder's Share of
must be allocated between the estate or trust and the
Income, Deductions, Credits, etc., box 13 (code J);
beneficiaries. For details, see the Instructions for Form
• Schedule K-1 (Form 1041), Beneficiary's Share of
8582-CR.
Income, Deductions, Credits, etc., box 13 (code F); or
• Form 1099-PATR, Taxable Distributions Received
From Cooperatives, box 11 (box 9 for 2019; box 8 before
2019), or other notice of credit allocation.
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We need it to ensure that you are complying with these laws
and to allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be
retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103.
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden
for individual and business taxpayers filing this form is approved under OMB control number 1545-0074 and 1545-0123
and is included in the estimates shown in the instructions for their individual and business income tax return. The
estimated burden for all other taxpayers who file this form is shown below.
Recordkeeping 3 hr., 6 min.
Learning about the law or the form 1 hr., 15 min.
Preparing and sending the form to the IRS 2 hr., 34 min.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,
we would be happy to hear from you. See the instructions for the tax return with which this form is filed.
Instructions for Form 5884 (Rev. 3-2021) -3-
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