In response to the COVID-19 pandemic, the The Taxpayer Certainty and Disaster Tax Relief Act of 2020 made changes to what qualifies as a work opportunity credit. Check out this IRS resource for more information about these changes.
Select your module below to learn how to generate Form 5884 in the program:
Individual
Follow these steps to generate Form 5884 for a sole proprietorship (Schedule C):
- Click on the Detail tab.
- Navigate to Screen 34, General Business & Vehicle Credits.
- Under the Credits section, select the Form (Ctrl+T) dropdown menu and choose Schedule C.
- Select the activity from Activity name or number (Ctrl+T).
- Scroll down to the Work Opportunity Credit (5884) section.
- Under the Qualified Wages Paid subsection, enter the 25% (line 1a) (qualified first-year wages of employees who worked at least 120 hours but fewer than 400 hours for you).
- Enter the 40% (line 1b) (qualified first-year wages of employees who worked at least 400 hours for you).
- Enter the 50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
Follow these steps to generate Form 5884 for a passthrough partnership:
- Click on the Detail tab.
- Navigate to Screen 20.1, Partnership Information.
- Scroll down to the Line 15 - Credits and Withholding section.
- Select J= Work opportunity credit from the K-1 Code dropdown menu.
- Enter the Amount of Credit.
Follow these steps to generate Form 5884 for a Passthrough S Corporation:
- Click on the Detail tab.
- Navigate to Screen 20.2 - S Corporation Information.
- Scroll down to the Line 13- Credits and Withholding section.
- Select J= Work opportunity credit from Code dropdown menu.
- Enter the Amount of Credit.
Partnership
- Click on the Detail tab.
- Navigate to Screen 20, Credits.
- Select Other Credits from the left navigation panel.
- Scroll down to the Work Opportunity Credit (5884) section.
- Under the Qualified Wages Paid subsection, enter the 25% (line 1a) (qualified first-year wages of employees who worked for you at least 120 hours but fewer than 400 hours).
- Enter the 40% (line 1b) (qualified first-year wages of employees who worked for you at least 400 hours).
- Enter the 50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
- Enter any remaining applicable fields.
S-Corporate
- Click on the Detail tab.
- Navigate to Screen 26, Credits.
- Select Schedule K Credits from the left navigation panel.
- Scroll down to the Work Opportunity Credit (5884) section.
- Under the Qualified Wages Paid subsection, enter the 25% (line 1a) (qualified first-year wages of employees who worked at least 120 hours but fewer than 400 hours for you).
- Enter the 40% (line 1b) (qualified first-year wages of employees who worked at least 400 hours for you).
- Enter the 50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
- Enter any remaining applicable fields.
Corporate
- Click on the Detail tab.
- Navigate to Screen 28, General Business Credits (3800).
- Select Work Opportunity Credit (5884)from the left navigation panel.
- Under the Qualified Wages Paid subsection, enter the 25% (line 1a) (qualified first-year wages of employees who worked at least 120 hours but fewer than 400 hours for you).
- Enter the 40% (line 1b) (qualified first-year wages of employees who worked for you at least 400 hours).
- Enter the 50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
- Enter any remaining applicable fields.