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Generating Form 5884, Work Opportunity Credit in ProConnect Tax

SOLVEDby IntuitUpdated 1 month ago

For tax year 2023, Form 3800 is undergoing a major IRS rewrite that expands the form to 8 pages. This form is still in development, pending a future release. Form 1120S and 1065 filers that require Form 3800 may want to consider filing extensions.

New for tax year 2023:

  • Pre-filing registration requirement. If you intend to make an elective payment election and/or a transfer election on Form 3800, you must complete a pre-filing registration before you file your tax return.
  • Elective payment election. Beginning with tax year 2023, certain applicable entities and electing taxpayers can elect to treat certain IRA 2022 business credits as elective payments. Certain eligible taxpayers can elect to treat CHIPS 2022 credits as elective payments. Any overpayments may result in refunds.
  • Transferring credits. Taxpayers may make an election to transfer all or a portion of certain IRA 2022 credits.
  • See IRS instructions for 3800 for more information.

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):

  1. Go to Input Return  Credits  General Business and Vehicle Cr. 
  2. Under the Credits section, select the Form dropdown menu and choose Schedule C.
  3. Select the activity from Activity name or number. 
  4. Select the Employment tab.
  5. Locate the Work Opportunity Credit (5884) section.
  6. 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).
  7. Enter the 40% (line 1b) (qualified first-year wages of employees who worked at least 400 hours for you).
  8. 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:

  1. Go to Input Return  Income  Passthrough K-1's.
  2. Select Partnership Info (1065 K-1)
  3. Select the Lines 11-20 tab.
  4. Scroll down to the Line 15 - Credits and Withholding section.
  5. Select J= Work opportunity credit from the K-1 Code dropdown menu.
  6. Enter the Amount of Credit.

Follow these steps to generate Form 5884 for a Passthrough S Corporation:

  1. Go to Input Return  Income Passthrough K-1's S-Corp Info (1120S K-1)
  2. Select the Lines 11-17 tab.
  3. Scroll down to the Line 13 - Credits and Withholding section.
  4. Select J= Work opportunity credit from the K-1 Code dropdown menu.
  5. Enter the Amount of Credit.
  1. Go to Input Return Schedule K Credits  Other Credits.
  2. Select the Employment tab.
  3. Scroll down to the Work Opportunity Credit (5884) section.
  4. 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).
  5. Enter the 40% (line 1b) (qualified first-year wages of employees who worked for you at least 400 hours).
  6. Enter the  50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
  7. Enter any remaining applicable fields.
  1. Go to Input Return Schedule K Credits Schedule K Credits.
  2. Select the Employment tab.
  3. Scroll down to the Work Opportunity Credit (5884) section.
  4. 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).
  5. Enter the 40% (line 1b) (qualified first-year wages of employees who worked for you at least 400 hours).
  6. Enter the  50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
  7. Enter any remaining applicable fields.
  1. Go to Input Return  Credits  General Business Credits (3800)
  2. Select General Business Credits in the drop down.
  3. Select the Employment tab.
  4. Locate the Work Opportunity Credit (5884) section.
  5. 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).
  6. Enter the 40% (line 1b) (qualified first-year wages of employees who worked for you at least 400 hours).
  7. Enter the 50% (line 1c) (qualified second-year wages of employees certified as long-term family assistance recipients).
  8. Enter any remaining applicable fields.

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