8845 Instructions for Form 8845

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2018

Instructions for Form 8845

Department of the Treasury
Internal Revenue Service

Indian Employment Credit

DRAFT AS OF
September 26, 2018
Line 5

Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 8845 and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form8845.

What’s New

The Indian employment credit has expired for qualified
wages and health care costs paid or incurred in tax years
beginning after 2017.

Enter total Indian employment credits from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code P);
• Schedule K-1 (Form 1120S), Shareholder’s Share of
Income, Deductions, Credits, etc., box 13 (code P);
• Schedule K-1 (Form 1041), Beneficiary’s Share of
Income, Deductions, Credits, etc., box 13 (code L); and
• Form 1099-PATR, Taxable Distributions Received
From Cooperatives, box 10, or other notice of credit
allocation.

At the time these instructions went to print,
Congress had not enacted legislation on expired
CAUTION provisions. To find out if legislation has been
enacted, go to IRS.gov/Form8845.

Partnerships and S corporations report the above
credits on line 5. Also, estates and trusts that can allocate
the source credit to beneficiaries and cooperatives that
can allocate the credit to patrons report the above credits
on line 5. All other filers report the above credits directly
on Form 3800, Part III, line 1g, and don’t file Form 8845.

General Instructions

Line 7

!

Purpose of Form

Use the 2018 Form 8845 to report any Indian employment
credit you received from a fiscal year partnership,
cooperative, S corporation, estate, or trust whose tax year
began in 2017 (when the credit was still available) and
ends during your 2018 tax year.
Partnerships and S corporations must file this form to
claim the credit. All others are generally not required to
complete or file this form if their only source for this credit
is a partnership, S corporation, estate, trust, or
cooperative. Instead, they can report this credit directly on
Form 3800, General Business Credit. The following
exceptions apply.
• You are an estate or trust and the source credit can be
allocated to beneficiaries. For more details, see the
instructions for Form 1041, Schedule K-1, box 13, code L.
• You are a cooperative and the source credit can or
must be allocated to patrons. For more details, see the
instructions for Form 1120-C, Schedule J, line 5c.

Specific Instructions
Lines 1 Through 4

These lines are now shown as “Reserved for future use” in
case Congress extends the Indian employment credit for
2018. When any form, worksheet, or instruction refers to
these lines, treat the amounts on these lines as zero.

Aug 22, 2018

Cooperatives. A cooperative described in section
1381(a) must allocate to its patrons the credit in excess of
its tax liability limit. Therefore, to figure the unused amount
of the credit allocated to patrons, the cooperative must
first figure its tax liability. While any excess is allocated to
patrons, any credit recapture applies as if the cooperative
had claimed the entire credit.
If the cooperative is subject to the passive activity rules,
include on line 5 any Indian employment credit from
passive activities disallowed for prior years and carried
forward to this year. Complete Form 8810, Corporate
Passive Activity Loss and Credit Limitations, to determine
the allowed credit that can be allocated to patrons. For
details, see the Instructions for Form 8810.
Estates and trusts. Allocate the Indian employment
credit on line 6 between the estate or trust and the
beneficiaries in the same proportion as income was
allocated and enter the beneficiaries share on line 7.
If the estate or trust is subject to the passive activity
rules, include on line 5 any Indian employment credit from
passive activities disallowed for prior years and carried
forward to this year. Complete Form 8582-CR, Passive
Activity Credit Limitations, to determine the allowed credit
that must be allocated between the estate or trust and the
beneficiaries. For details, see the Instructions for Form
8582-CR.

Cat. No. 66389C

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the
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You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act
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retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by section 6103.

DRAFT AS OF
September 26, 2018
The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden
for business taxpayers filing this form is approved under OMB control number 1545-0123 and is included in the
estimates shown in the instructions for their business income tax return.
Comments.You can send us comments by going to IRS.gov/forms-pubs/comment, clicking on “More Information,”
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THIS ADDRESS.

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Instructions for Form 8845 (2018)