OMB No. 1545-0219

Form 5884 Jobs Credit

Department of the Treasury

Internal Revenue Service © Attach to your return.

Attachment

Sequence No. 77

Name(s) as shown on return Identifying number

Current Year Jobs Credit

1 Enter the total qualified wages paid or incurred during the tax year for services of employees who are

certified as members of a targeted group and began work for you before July 1, 1992 1

Enter 40% (.40) of line 1 here. You must subtract this amount from the deduction on your return for

salaries and wages. (Members of a group of trades or businesses under common control, see

instructions.)

2

2

If you are a— Then enter total of current year jobs credit(s) from—

Schedule K-1 (Form 1120S), lines 12d, 12e, or 13

Schedule K-1 (Form 1065), lines 13d, 13e, or 14

Schedule K-1 (Form 1041), line 13

Written statement from cooperative

a Shareholder

b Partner

c Beneficiary

d Patron

Jobs credits from

flow-through

entities

3

3

Current year jobs credit. Add lines 2 and 3. (S corporations, partnerships, estates, trusts, and

cooperatives, see instructions.) 

4

4

Tax Liability Limitation (See Who Must File Form 3800, General Business Credit, to see if you complete

Part II or file Form 3800.)

5a Individuals. Enter amount from Form 1040, line 40 

Corporations. Enter amount from Form 1120, Schedule J, line 3 (or Form 1120-A, Part I, line 1) 5 b

c Other filers. Enter regular tax before credits from your return 

6 Credits that reduce regular tax before the jobs credit:

Credit for child and dependent care expenses (Form 2441) 6a a

b Credit for the elderly or the disabled (Schedule R (Form 1040)) 6b

6c c Foreign tax credit (Form 1116 or Form 1118) 

d Possessions tax credit (Form 5735) 6d

e Mortgage interest credit (Form 8396) 6e

Credit for fuel from a nonconventional source 6f f

g Orphan drug credit (Form 6765) 6g

h Add lines 6a through 6g 6h

7 Net regular tax. Subtract line 6h from line 5 7

8 Tentative minimum tax (see instructions):

a Individuals. Enter amount from Form 6251, line 20 

b Corporations. Enter amount from Form 4626, line 15 8

c Estates and trusts. Enter amount from Form 1041, Schedule H, line 37 

9 Net income tax:

a Individuals. Add line 7 above and line 22 of Form 6251. Enter the total 

b Corporations. Add line 7 above and line 17 of Form 4626. Enter the total 9

c Estates and Trusts. Add line 7 above and line 39 of Form 1041, Schedule H

10 If line 7 is more than $25,000, enter 25% (.25) of the excess (see instructions) 10

11 11 Subtract line 8 or line 10, whichever is greater, from line 9. Enter the result. If less than zero, enter -0-

Jobs credit allowed for the current year. Enter the smaller of line 4 or line 11. This is your General

Business Credit for 1992. Enter here and on Form 1040, line 44; Form 1120, Schedule J, line 4e;

Form 1120-A, Part I, line 2a; or the appropriate line of other income tax returns 

12

12

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.

Recordkeeping 3 hr., 50 min.

Learning about the law

or the form 35 min.

Preparing and sending

the form to the IRS 41 min.

Item To Note

The time needed to complete and file this

form will vary depending on individual

circumstances. The estimated average time

is:

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form more

simple, we would be happy to hear from you.

You can write to both the IRS and the Office

of Management and Budget at the addresses

listed in the instructions of the tax return with

which this form is filed.

Form 5884 (1992)

● The targeted jobs credit expired for

employees who began work for you after

June 30, 1992. If the credit is extended for

Part I

Part II

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Cat. No. 13570D

General Instructions

(Section references are to the Internal

Revenue Code.)

Purpose of Form

Mutual savings institutions, regulated

investment companies, and real estate

investment trusts can take a limited credit.

See section 52(e) and the related regulations.

Use Form 5884 if you had jobs credit

employees and take an income tax credit for

wages you paid or accrued for them during

the tax year.

Paperwork Reduction Act

Notice

employees hired after June 30, 1992, the IRS

will use the media to inform you.
Form 5884 (1992) Page 2

● Economically disadvantaged ex-convicts.

Controlled groups.—The group member

proportionately contributing the most

first-year wages figures the group credit in

Part I and skips Part II. See sections 52(a)

and 1563.

● Eligible work incentive employees.

● Qualified summer youth employees, age 16

or 17, who work for you between May 1 and

September 15.

On separate Forms 5884, that member and

every other member of the group should skip

In addition, to claim a jobs credit on an

employee’s wages:

1. More than half the wages received from

you must be for working in your trade or

business;

2. The employee must be certified, as

explained below, as belonging to a targeted

group;

3. You may not claim a credit on wages

that were repaid by a federally funded

on-the-job training program, or for which you

received work supplementation payments

under the Social Security Act;

If you were allocated a jobs credit from a

flow-through entity, skip lines 1 and 2 for that

credit and enter it on line 3.

You can claim or elect not to claim the jobs

credit any time within 3 years from the due

date of your return on either your original

return or on an amended return.

Line 2.—In general, you must subtract your

current year jobs credit on line 2 from the

deduction on your return for salaries and

wages you paid or accrued for 1992. This is

true even if you cannot take the full credit this

year and must carry part of it back or

forward.

4. The employee cannot be your relative or

dependent (see section 51(i));

5. The employee cannot be your rehired

employee if he or she was not a targeted

group member when employed earlier;

Who Must File Form 3800,

General Business Credit

An exception to this rule applies if you

capitalized any salaries and wages on which

you figured the credit. In this case, reduce

your depreciable basis by the amount of the

jobs credit on those salaries and wages.

6. The employee must have worked for you

for at least 90 days (14 days for a summer

youth employee) or completed at least 120

hours of service (20 hours for a summer

youth employee); and

Another exception involves the full

absorption method of inventory costing that

requires you to reduce your basis in inventory

for the jobs credit.

7. The wages cannot be for services of

replacement workers during a strike or

walkout.

Certification is done by a local agency,

generally an office of the State Employment

Security Agency (Jobs Service). The agency

gives the employer a form certifying that the

employee is in a targeted group. The

certification must be completed or the

employer must request, in writing, a

certification from the certifying agency by the

date the employee begins work (or within 5

days if the employer has received a written

preliminary determination that the employee is

in a targeted group).

If either exception applies to you, attach a

statement to your return to explain why the

amount on line 2 differs from the amount you

subtract from your salary and wage

deduction.

How To Figure the Credit

Line 3.—Enter the amount of credit that was

allocated to you as a shareholder, partner,

beneficiary, or patron of a cooperative.

Line 4.—If you have a credit from a passive

activity, stop here and go to Form 3800.

1. You can take a jobs credit for agricultural

employees who meet the other tests if their

services qualify under FUTA as agricultural

labor during more than half of any pay period.

Base your credit for each employee on the

first $6,000 in wages subject to social

security and Medicare taxes paid or accrued

for that person during the year.

Estates and trusts.—The jobs credit on

line 4 is allocated between the estate or trust

and the beneficiaries in proportion to the

income allocable to each. On the dotted line

to the left of the amount on line 4, the estate

or trust should enter its part of the total jobs

credit. Label it “1041 PORTION” and use this

amount in Part II (or Form 3800, if required) to

figure the jobs credit to claim on Form 1041.

Certification of a youth in a cooperative

education program.—The certification is

completed by the school administering the

cooperative program. The school gives the

employer a completed Form 6199,

Certification of Youth Participating in a

Qualified Cooperative Education Program.

2. You can take a credit for railroad

employees who meet the other tests if their

wages qualify under the Railroad

Unemployment Insurance Act (RUIA). Base

your credit for each employee on the first

$6,000 in wages subject to RUIA tax paid or

accrued for that person during the year.

S corporations and partnerships.—

Prorate the jobs credit on line 4 among the

shareholders or partners. Attach Form 5884

to the return and on Schedule K-1 show the

credit for each shareholder or partner.

Specific Instructions

Part I

Line 1.—Enter the first-year wages paid to

qualified employees. The wages are limited to

$6,000 of first-year wages paid. The wages

for qualified summer youth employees are

limited to $3,000. If you paid first-year wages

to a qualified employee last year, subtract

those wages from the $6,000 limit.

Cooperatives.—Most tax-exempt

organizations cannot take the jobs credit; but

a cooperative described in section 1381(a)

takes the jobs credit to the extent it has tax

liability. Any excess is shared among its

patrons.

3. Wages for youths in a cooperative

education program are not subject to FUTA,

but include their wages in the amount you

use to figure your jobs credit. Base your jobs

credit for each youth on the first $6,000 in

wages you paid or accrued for that person

during the year.

For example, if a jobs credit employee

began working in your business on

September 1, 1991, and you are a calendar

year taxpayer, you would have figured your

1991 jobs credit based on the first-year

wages you paid between September 1 and

December 31, 1991. You would figure your

1992 credit on the rest of the first-year wages

you paid between January 1 and August 31,

1992.

Line 12.—If you cannot use part of the credit

because of the tax liability limitations (line 12

is smaller than line 4), carry it back 3 years,

then forward 15 years. See the separate

Instructions for Form 3800 for details.

Your credit is based on a percentage of the

wages for each employee in the following

targeted groups:

● Referrals by a vocational rehabilitation

program.

● Economically disadvantaged youths.

● Economically disadvantaged Vietnam-era

veterans.

For each qualified summer youth employee,

wages are limited to those paid for any

90-day period between May 1 and September

15, up to $3,000. You cannot claim a credit

for an employee who was your employee in

any prior period. Also, the summer youth

employee must have worked for you at least

14 days, or completed at least 20 hours of

service.

Part II

● Supplemental Security Income (SSI)

recipients.

● General assistance recipients.

● Youths in a cooperative education program,

who belong to an economically

disadvantaged family.

Line 10.—See section 38(c)(2) for special

rules for married couples filing separate

returns, for controlled corporate groups, and

for estates and trusts.

Line 8.—Enter the tentative minimum tax

(TMT) that was figured on the appropriate

alternative minimum tax (AMT) form or

schedule. Although you may not owe AMT,

you must still compute the TMT to figure your

credit.

The general business credit consists of the

investment credit, jobs credit, credit for alcohol

used as fuel, research credit, low-income

housing credit, enhanced oil recovery credit,

disabled access credit, and the renewable

electricity production credit. If you have more

than one of these credits for 1992, a carryback

or carryforward of any of these credits, or a

jobs credit from a passive activity, file Form

3800, which is used instead of Part II of Form

5884 to figure the tax liability limitation.

In general, figure your jobs credit based on

the employee’s wages subject to the Federal

Unemployment Tax Act (FUTA). Jobs credit

wages, however, are limited to $6,000 for

each employee ($3,000 for each qualified

summer youth employee). Special rules apply

in the following cases:

required) on its separate form. Each group

member must attach to its Form 5884 a

schedule showing how the group credit was

divided among all the members. The

members share the credit in the same

proportion that they contributed qualifying

wages.

line 1 and enter its share of the group credit

on line 2. Each member then completes lines

3 and 4, and 5 through 12 (or Form 3800, if