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OMB No. 1545-2126
Form 8932 Credit for Employer Differential Wage Payments
(Rev. December 2021) ▶ Attach to your tax return. Attachment
Department of the Treasury
Internal Revenue Service ▶ Go to www.irs.gov/Form8932 for the latest information. Sequence No. 161
Name(s) shown on return Identifying number

1 Eligible differential wage payments paid during the tax year (see instructions) . . . . . . . 1
2 Multiply line 1 by 20% (0.20). See instructions for the adjustment you must make to your
deduction for salaries and wages . . . . . . . . . . . . . . . . . . . . . . 2
3 Credit for employer differential wage payments from partnerships, S corporations, cooperatives,
estates, and trusts (see instructions) . . . . . . . . . . . . . . . . . . . . . 3
4 Add lines 2 and 3. Cooperatives, estates, and trusts, go to line 5. Partnerships and S corporations,
stop here and report this amount on Schedule K. All others, stop here and report this amount on
Form 3800, Part III, line 1w . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust (see
instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Cooperatives, estates, and trusts, subtract line 5 from line 4. Report this amount on Form 3800,
Part III, line 1w . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
General Instructions The credit for employer differential wage payments is part
of the general business credit.
Section references are to the Internal Revenue Code unless
otherwise noted. Partnerships, S corporations, cooperatives, estates, and
trusts must file this form to claim the credit. All other
Future Developments taxpayers are not required to complete or file this form if
their only source for this credit is a partnership,
For the latest information about developments related to S corporation, cooperative, estate, or trust. Instead, they can
Form 8932 and its instructions, such as legislation enacted report this credit directly on Form 3800, General Business
after they were published, go to www.irs.gov/Form8932. Credit.
Which Revision To Use For details, see section 45P and Notice 2010-15, 2010-6
I.R.B. 390, available at
Use this December 2021 revision of Form 8932 for tax years www.irs.gov/irb/2010-06_IRB#NOT-2010-15.
beginning in 2021 or later, until a later revision is issued. Use
prior revisions of this form for earlier tax years. All revisions Definitions
are available at www.irs.gov/Form8932.
Eligible Differential Wage Payments
What’s New Eligible differential wage payments are the total differential
Differential wage payments. Differential wage payments wage payments paid to the employee for the tax year, up to
don’t include: $20,000.
• Wage payments made after December 31, 2020, and Qualified Employee
before July 1, 2021, if you use the same wage payments to A qualified employee is a person who has been an employee
claim the employee retention credit on an employment tax for the 91-day period immediately preceding the period for
return such as Form 941, Employer’s QUARTERLY Federal which any differential wage payment is made.
Tax Return;
• Wage payments made after March 31, 2021, and before Differential Wage Payment
October 1, 2021, if you use the same wage payments to To be considered a differential wage payment, the payment
claim the credit for qualified sick and family leave wages on must meet both of the following requirements.
an employment tax return such as Form 941; and • The payment is made to a qualified employee for any
• Wage payments made generally after December 27, 2019, period during which the employee is performing service in
and before April 17, 2021, if you use the same wage the uniformed services of the United States while on active
payments to claim the 2020 qualified disaster employee duty for a period of more than 30 days.
retention credit on Form 5884-A, Employee Retention Credit • The payment represents all or a portion of the wages the
for Employers Affected by Qualified Disasters. employee would have received from the employer if the
Employee retention credit. Wages paid after June 30, employee were performing services for the employer.
2021, and before January 1, 2022, and used to figure the Differential wage payments don’t include certain
credit for employer differential wage payments can’t also be wage payments discussed under What’s New.
used to figure a coronavirus-related employee retention !
credit. ▲CAUTION
Purpose of Form Controlled Groups
Use Form 8932 to claim the credit for eligible differential All persons treated as a single employer under subsection
wage payments made to qualified employees after 2008. The (b), (c), (m), or (o) of section 414 are treated as a single
credit is 20% of up to $20,000 of differential wage payments employer.
paid to each qualified employee during the tax year.

For Paperwork Reduction Act Notice, see instructions. Cat. No. 37747W Form 8932 (Rev. 12-2021)

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Form 8932 (Rev. 12-2021) Page 2
Uniformed Services Line 5
Uniformed services means the Armed Forces; the Army Cooperatives. A cooperative described in section 1381(a)
National Guard and the Air National Guard when engaged in must allocate to its patrons the credit in excess of its tax
active duty for training, inactive duty training, or full-time liability limit. Therefore, to figure the unused amount of the
National Guard duty; the commissioned corps of the Public credit allocated to patrons, the cooperative must first figure
Health Service; and any other category of persons its tax liability. While any excess is allocated to patrons, any
designated by the President in time of war or national credit recapture applies as if the cooperative had claimed
emergency. the credit.
Coordination With Other Credits If the cooperative is subject to the passive activity rules,
include on line 3 any Form 8932 credit from passive activities
The amount of any research credit or orphan drug credit disallowed for prior years and carried forward to this year.
otherwise allowable for compensation paid to any employee Complete Form 8810, Corporate Passive Activity Loss and
is reduced by the credit for differential wage payments Credit Limitations, to determine the allowed credit that must
figured for that employee. be allocated to patrons. For details, see the Instructions for
Form 8810.
Disallowance for Failure To Comply With
Estates and trusts. Allocate the credit for employer
Employment or Reemployment Rights of differential wage payments on line 4 between the estate or
Members of the Reserve Components of the trust and the beneficiaries in the same proportion as income
Armed Forces of the United States was allocated and enter the beneficiaries’ share on line 5.
No credit will be allowed to a taxpayer for: If the estate or trust is subject to the passive activity rules,
include on line 3 any Form 8932 credit from passive activities
• Any tax year in which the taxpayer is under a final order,
disallowed for prior years and carried forward to this year.
judgment, or other process issued or required by a district
Complete Form 8582-CR, Passive Activity Credit Limitations,
court of the United States under section 4323 of title 38 of
to determine the allowed credit that must be allocated
the United States Code with respect to a violation of chapter
between the estate or trust and the beneficiaries. For details,
43 of title 38; and
see the Instructions for Form 8582-CR.
• The 2 succeeding tax years.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
Specific Instructions
laws of the United States. You are required to give us the
Line 1 information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the right
Enter the total amount of eligible differential wage payments
amount of tax.
made to qualified employees during the tax year. Do not
include more than $20,000 of payments for any employee. You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
Line 2 unless the form displays a valid OMB control number.
Generally, you must reduce your deduction for salaries and Books or records relating to a form or its instructions must
wages by the amount on line 2, even if you cannot take the be retained as long as their contents may become material in
full credit this year because of the tax liability limit. If you the administration of any Internal Revenue law. Generally,
capitalized any costs on which you figured the credit, reduce tax returns and return information are confidential, as
the amount capitalized by the credit attributable to these required by section 6103.
costs. The time needed to complete and file this form will vary
Line 3 depending on individual circumstances. The estimated
burden for individual and business taxpayers filing this form
Enter total credits for employer differential wage payments is approved under OMB control number 1545-0074 and
from: 1545-0123 and is included in the estimates shown in the
• Schedule K-1 (Form 1065), Partner’s Share of Income, instructions for their individual and business income tax
Deductions, Credits, etc., box 15 (code P); return. The estimated burden for all other taxpayers who file
• Schedule K-1 (Form 1120-S), Shareholder’s Share of this form is shown below.
Income, Deductions, Credits, etc., box 13 (code P); Recordkeeping . . . . . . . . . . .1 hr., 54 min.
• Schedule K-1 (Form 1041), Beneficiary’s Share of Income, Learning about the
Deductions, Credits, etc., box 13 (code Q); or law or the form . . . . . . . . . . . . 30 min.
• Form 1099-PATR, Taxable Distributions Received From Preparing and sending the form
Cooperatives, box 12, or other notice of credit allocation. to the IRS . . . . . . . . . . . . . . 33 min.
Partnerships, S corporations, cooperatives, estates, and If you have comments concerning the accuracy of these
trusts report the above credits on line 3. All other filers time estimates or suggestions for making this form simpler,
figuring a separate credit on earlier lines also report the we would be happy to hear from you. See the instructions
above credits on line 3. All others not using earlier lines to for the tax return with which this form is filed.
figure a separate credit can report the above credits directly
on Form 3800, Part III, line 1w.

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