Fillable Form 5884-C

What is Form 5884-C?

Form 5884-C is an Internal Revenue Service (IRS) form used by qualified tax-exempt organizations to claim the work opportunity credit for qualified first-year wages paid to qualified veterans.

The credit is claimed against the employer portion of social security tax on wages paid to all employees during the 1-year period beginning on the day a qualified veteran begins working for the organization and does not apply to the employer’s portion of Medicare tax. The qualified veteran must be providing services in activities related to the purpose or function constituting the basis of the organization’s tax-exempt status.

The organization must ask for and be issued a certification for each qualified veteran from the state workforce agency (SWA) of the state in which the organization is located. This certificate proves that the employee is a qualified veteran, and must be obtained by the organization through either of the following means:

• Receive the certification by the day the individual begins work
• Completing Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, on or before the day the organization offers the individual a job and receives the certification before it claims the credit.

Form 5884-C is filed separately from any other returns. The credit claimed on Form 5884-C generally does not affect the tax liability reported on the organization’s employment tax returns. Because of this, the organization should not reduce its required deposits in anticipation of any credit. The IRS will refund the amount shown on line 11 of the 5884-C form, plus any interest that applies unless the IRS corrects the 5884 C form during processing, or the organization owes other taxes, penalties, or interest that must be filed or paid.

Who needs to use Form 5884-C?

IRS Form 5884-C is filed by qualified tax-exempt organizations after the organization has filed its employment tax return for the employment tax period for which it is claiming the credit. Form 5884 C should be filed for each employment period during which the organization paid qualified first-year wages to a qualified veteran.

How to fill out Form 5884-C?

Form 5884-C is a very simple form to fill out. Make sure to download the form in PDF format so as to make sure that the contents and information entered in the form remain intact regardless of how it is submitted or opened. It will also be beneficial to have the relevant documents prepared to ensure that all information entered in the form is correct and updated. If more details are required on particular steps or items on the form, you may consult the instructions for Form 5884-C on pages 2 to 4 of this form.

Name as Shown on Form 941 or Other Employment Tax Return

Enter the full name (not the trade name) of the filer as shown on Form 941 or any other employment tax return.

Employer Identification Number

Enter the employer identification number (EIN) of the organization.

Trade Name

Enter the trade name of the filer, if any.

Number, Street, and Room or Suite Number

Enter the number, street, and room or suite number of the filer. If the local post office does not deliver mail to the given street address, enter the P.O. box number as well.

City or Town, State, and ZIP code

Enter the city or town, state, and ZIP code of the filer.

Line 1

If the organization is a qualified tax-exempt organization as described in section 501(c) of the United States Internal Revenue Code, and is exempt from tax under section 501(a), check “Yes” and proceed to Line 2. Otherwise, check “No” and do not file this form.

Line 2

Check the box that indicates the employment tax return the organization filed to report the wages paid to a qualified veteran. You may choose from the following:

• Form 941
• Form 941-PR
• Form 941-SS
• Form 943
• Form 943-PR
• Form 944 or 944(SP)
• Form 944-PR
• Form 944-SS

Line 3

Check the box or boxes that indicate the employment tax period for which the organization is claiming this credit. You may choose from the following:

Year

• 2011
• 2012
• 2013
• 2014
• 2015
• 2016
• 2017
• 2018
• 2019
• 2020
• 2021
• 2022
• 2023
• 2024
• 2025
• 2026

Quarter (if applicable)

• 1st: January, February, March
• 2nd: April, May, June
• 3rd: July, August, September
• 4th: October, November, December

Line 4a

Enter the total qualified first-year wages paid through the end of the employment tax period indicated on Line 3 to all employees certified as qualified veterans that began working for the organization on or after November 22, 2011, and have worked for the organization for at least 400 hours as of the date that this form was filed.

Line 4b

Multiply Line 4a by 26% (0.26) and enter the product.

Line 5a

Enter the total qualified first-year wages paid through the end of the employment tax period indicated on Line 3 to all employees certified as qualified veterans that began working for the organization on or after November 22, 2011, and have worked for the organization for at least 120 hours but fewer than 400 hours as of the date that this form was filed.

Line 5b

Multiply Line 5a by 16.25% (0.1625) and enter the product.

Line 6

Add Lines 4b and 5b and enter the sum.

Line 7

Enter the total amount of credits claimed on Line 11 of any Forms 5884-C filed for previous employment tax periods.

If the amount of Line 7 is greater than the amount on Line 6, skip Lines 8 through 11 and proceed to Line 12. Otherwise, proceed to Line 8 as normal.

Line 8

Subtract Line 7 from Line 6 and enter the difference.

Line 9

Enter the organization’s total taxable social security wages and tips reported on the return indicated on Line 2 for the period indicated on Line 3.

Line 10

Multiply Line 9 by 6.2% (0.062) and enter the product.

Line 11

Enter the smaller of Line 8 or Line 10, and proceed to sign the form below.

Line 12

If Line 7 is greater than Line 6, subtract Line 6 from Line 7 and enter the difference. Do not fill out this line if you filled out Lines 8 to 11.

Signature

Have the representative of the organization that this form is being filed for sign in the space provided.

Title

Enter the title of the representative that signed this form.

Date

Enter the date that the form was signed.

Daytime Telephone Number

Enter the daytime telephone number of the organization.

Paid Preparer Use Only

Preparer’s Name

Enter the name of the preparer.

Preparer Signature

Have the preparer sign the form in the space provided.

Date

Enter the date that the preparer signed the form.

Self-employed

Check the box provided if the preparer is self-employed.

Preparer Tax Identification Number

Enter the preparer’s Preparer Tax Identification Number (PTIN).

Firm Name

Enter the name of the firm that the preparer works for, if applicable.

Firm EIN

Enter the firm’s EIN, if applicable.

Firm Address

Enter the firm’s number, street, city or town, county or state, country, and ZIP code, if applicable.

Phone Number

Enter the preparer’s primary phone number.

Tips when filling out Form 5884-C

While Form 5884-C is very simple to fill out, it is important to make sure that all information entered is accurate and complete, so it may be beneficial to double-check the form after it has been accomplished.

Make sure all information entered is correct, and that the form is submitted to the appropriate place on time. This will help avoid any legal consequences for submitting the wrong information to the IRS and ensure that filing the form and claiming the credits goes smoothly.

Practice good contract management. Make sure to keep a copy of the form in a safe and organized area, or even copy it again in order to be doubly sure that you have a backup in case the original is damaged in some way. This will be useful for possible legal purposes in the future, or even simply as a record.