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Generating Form 5884, Work Opportunity Credit in Lacerte

SOLVEDby Intuit37Updated 1 month ago

Select your module below to learn how to generate Form 5884 in the program:

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.

Individual

Follow these steps to generate Form 5884 for a sole proprietorship (Schedule C):

  1. Go to Screen 34, General Business & Vehicle Credits.
  2. Under the Credits section, select the Form (Ctrl+T) dropdown menu and choose Schedule C.
  3. Select the activity from Activity name or number (Ctrl+T)
  4. Scroll down to 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 at least 400 hours for you).
  7. 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 Screen 20.1, Partnership Information.
  2. Scroll down to the Line 15 - Credits and Withholding section.
  3. Select J = Work opportunity credit from the K-1 Code dropdown menu.
  4. Enter the Amount of Credit.

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

  1. Go to Screen 20.2 - S Corporation Information.
  2. Scroll down to the Line 13- Credits and Withholding section.
  3. Select J = Work opportunity credit from Code dropdown menu.
  4. Enter the Amount of Credit.
  1. Click on the Detail tab.
  2. Navigate to Screen 20, Credits.
  3. Select Other Credits from the left navigation panel.
  4. Scroll down to 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 for you at least 120 hours but fewer than 400 hours).
  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.
  1. Click on the Detail tab.
  2. Navigate to Screen 26, Credits.
  3. Select Schedule K Credits from the left navigation panel.
  4. Scroll down to 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 at least 400 hours for you).
  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.
  1. Click on the Detail tab.
  2. Navigate to Screen 28, General Business Credits (3800).
  3. Select Work Opportunity Credit (5884)from the left navigation panel.
  4. 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).
  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.

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