CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit.
Today’s WOTC Wednesday question: What IRS Tax Form is the WOTC Tax Credit Claimed On?
CMS Responds: What IRS Tax Form is the WOTC Tax Credit Taken? It’s going to be on the IRS 5884 where you claim your tax credit. Then that will move over to your 3800 from there.
Once you have received your tax credit certification(s) and calculated the value, you will claim the Work Opportunity Tax Credit as a general business credit on Form 3800 against your income tax by filing the following:
- Form 5884 (with instructions)
- Form 3800 (with instructions)
- Your business’s related income tax return and instructions (i.e., Forms 1040, 1041, 1120, etc.)
Qualified tax-exempt organizations described in IRC Section 501(c) and exempt from taxation under IRC Section 501(a), may claim the credit for qualified veterans against the employer social security tax by separately filing Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans.
File Form 5884-C after filing the related employment tax return for the period that the credit is claimed. The IRS recommends that qualified tax-exempt employers do not reduce their required deposits in anticipation of any credit. The credit will not affect the employer’s Social Security tax liability reported on the organization’s employment tax return.
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