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Page 2 of 3 Fileid: … ns/I5884/202003/A/XML/Cycle09/source 13:31 - 12-Mar-2020
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
• 50% or less of the wages the employee received from • $12,000 for a qualified veteran certified as being
you were for working in your trade or business. entitled to compensation for a service-connected disability
and hired not more than 1 year after being discharged or
Qualified wages do not include: released from active duty in the U.S. Armed Forces.
• Wages paid to or incurred for any employee during any $14,000 for a qualified veteran certified as being
•
period for which you received payment for the employee unemployed for a period or periods totaling at least 6
from a federally funded on-the-job training program; months (whether or not consecutive) in the 1-year period
• Wages paid to or incurred for a summer youth ending on the hiring date.
employee for services performed while the employee lived $24,000 for a qualified veteran certified as being
•
outside an empowerment zone; entitled to compensation for a service-connected
• Wages paid to or incurred for a designated community disability, and unemployed for a period or periods totaling
resident for services performed while the employee lived at least 6 months (whether or not consecutive), in the
outside an empowerment zone or rural renewal county; 1-year period ending on the hiring date.
• Wages paid to or incurred for services performed by a
summer youth employee before or after any 90-day period The amount of qualified first-year wages that may be
between May 1 and September 15; and taken into account for any employee certified as a
• Wages for services of replacement workers during a summer youth employee is limited to $3,000. The amount
strike or lockout. of qualified first-year wages that may be taken into
account for an employee certified as a member of any
Member of Controlled Group or
other targeted group is $6,000.
Business Under Common Control Successor employer. For successor employers, the 1-
For purposes of figuring the credit, all members of a or 2-year period begins on the date the employee began
controlled group of corporations (as defined in section work for the previous employer and any qualified first- or
52(a)) and all members of a group of businesses under second-year wages paid or incurred by the successor
common control (as defined in section 52(b)) are treated employer are reduced by the qualified first- or
as a single employer. As a member, figure your credit second-year wages paid or incurred by the previous
based on your proportionate share of qualified wages employer. See section 51(k)(1) and Regulations section
giving rise to the group’s work opportunity credit. Enter 1.51-1(h).
your share of the credit on line 2. Attach a statement
A successor employer is an employer that acquires
showing how your share of the credit was figured, and
substantially all of the property used in a trade or business
enter “See attached” next to the entry space for line 2.
(or a separate unit thereof) of another employer (the
previous employer) and immediately after the acquisition,
Specific Instructions the successor employs in his or her trade or business an
individual who was employed immediately prior to the
Current Year Credit acquisition in the trade or business of the previous
employer.
Lines 1a, 1b, and 1c
Enter on the applicable line and multiply by the Line 2
percentage shown the total qualified first- or second-year In general, you must reduce your deduction for salaries
wages paid to or incurred for employees who are and wages by the amount on line 2. This is required even
members of a targeted group. Qualified first-year wages if you can't take the full credit this year and must carry part
are qualified wages you paid to or incurred for work of it back or forward. If you capitalized any costs on which
performed during the 1-year period beginning on the date you figured the credit, reduce the amount capitalized by
the individual begins work for you. Qualified second-year the credit attributable to these costs.
wages are qualified wages you paid to or incurred for
certified long-term family assistance recipients for work Line 3
performed during the 1-year period beginning on the day Enter total work opportunity credits from:
after the last day of the 1-year wage period. • Schedule K-1 (Form 1065), Partner's Share of Income,
Deductions, Credits, etc., box 15 (code J);
The amount of qualified first-year wages and the • Schedule K-1 (Form 1120S), Shareholder's Share of
amount of qualified second-year wages that may be taken Income, Deductions, Credits, etc., box 13 (code J);
into account for any employee certified as a long-term • Schedule K-1 (Form 1041), Beneficiary's Share of
family assistance recipient is limited to $10,000 per year. Income, Deductions, Credits, etc., box 13 (code F); or
The amount of qualified first-year wages that may be • Form 1099-PATR, Taxable Distributions Received
taken into account for an employee certified as a qualified From Cooperatives, box 11 (box 9 for 2019; box 8 before
veteran is limited to the following amounts. 2019), or other notice of credit allocation.
• $6,000 for a qualified veteran certified as being either
(a) a member of a family receiving SNAP assistance (food Partnerships, S corporations, cooperatives, estates,
stamps) for at least a 3-month period during the 15-month and trusts report the above credits on line 3. All other filers
period ending on the hiring date, or (b) unemployed for a figuring a separate credit on earlier lines also report the
period or periods totaling at least 4 weeks (whether or not above credits on line 3. All others not using earlier lines to
consecutive) but less than 6 months in the 1-year period figure a separate credit can report the above credits
ending on the hiring date. directly on Form 3800, Part III, line 4b.
-2- Instructions for Form 5884 (March 2020)
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