Federal Credit for Employer-Provided Childcare Facilities and Services
Extracted from PDF file 2016-federal-form-8882.pdf, last modified January 2007
Credit for Employer-Provided Childcare Facilities and ServicesForm 8882 Credit for Employer-Provided Childcare Facilities and Services (Rev. December 2013) Department of the Treasury Internal Revenue Service ▶ OMB No. 1545-1809 Attachment Sequence No. 131 ▶ Attach to your tax return. Information about Form 8882 and its instructions is at www.irs.gov/form8882. Identifying number Name(s) shown on return 1 Qualified childcare facility expenditures paid or incurred . . . . . 2 Enter 25% (.25) of line 1 . . . . . 1 . . . . . . . . 2 . . . . . . . . 4 5 Credit for employer-provided childcare facilities and services from partnerships, S corporations, estates, and trusts . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 Add lines 2, 4, and 5 . . 6 7 Enter the smaller of line 6 or $150,000. Estates and trusts, go to line 8. Partnerships and S corporations, stop here and report this amount on Schedule K. All others, stop here and report this amount on Form 3800, line 1k . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Amount allocated to beneficiaries of the estate or trust (see instructions) . . . . . . . . . . . . 3 Qualified childcare resource and referral expenditures paid or incurred 4 Enter 10% (.10) of line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . 8 9 Estates and trusts. Subtract line 8 from line 7. Report this amount on Form 3800, line 1k . . . . 9 General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form Employers use Form 8882 to claim the credit for qualified childcare facility and resource and referral expenditures. The credit is part of the general business credit. You may claim the credit any time within 3 years from the due date of your return on either an original or amended return. Taxpayers, other than partnerships, S corporations, estates, or trusts, whose only source of this credit is from those pass-through entities, are not required to complete or file this form. Instead, they can report this credit directly on Form 3800. How To Figure the Credit The credit is 25% of the qualified childcare facility expenditures plus 10% of the qualified childcare resource and referral expenditures paid or incurred during the tax year. The credit is limited to $150,000 per tax year. Qualified childcare expenditures are amounts paid or incurred: • To acquire, construct, rehabilitate, or expand property that: 1. Is to be used as part of a qualified childcare facility of the taxpayer, 2. Is depreciable (or amortizable) property, and 3. Is not part of the principal residence of the taxpayer or any employee of the taxpayer; • For the operating expenses of a qualified childcare facility of the taxpayer, including expenses for training of employees, scholarship programs, and providing For Paperwork Reduction Act Notice, see back of form. . . . . increased compensation to employees with higher levels of childcare training; or • Under a contract with a qualified childcare facility to provide childcare services to employees of the taxpayer. Note. Any expenses for childcare included in qualified childcare facility expenditures may not exceed the fair market value of such care. A qualified childcare facility is a facility that meets the requirements of all applicable laws and regulations of the state or local government in which it is located, including the licensing of the facility as a childcare facility. The following conditions must also be met. • The principal use of the facility must be to provide childcare (unless the facility is also the personal residence of the person operating the facility). • Enrollment in the facility must be open to employees of the taxpayer during the tax year. • If the facility is the principal trade or business of the taxpayer, at least 30% of the enrollees of the facility must be dependents of employees of the taxpayer. • The use of the facility (or the eligibility to use the facility) must not discriminate in favor of highly compensated employees. Qualified childcare resource and referral expenditures are amounts paid or incurred under a contract to provide childcare resource and referral services to employees of the taxpayer. The provision of the services (or the eligibility to use the services) must not discriminate in favor of highly compensated employees. Cat. No. 33436Y Form 8882 (Rev. 12-2013) Page 2 Form 8882 (Rev. 12-2013) No Double Benefit Allowed Specific Instructions You must reduce: • The basis of any qualified childcare facility by the amount of the credit on line 7 allocable to capital expenditures related to the facility, • Any otherwise allowable deductions used to figure the credit by the amount of the credit on line 7 allocable to those deductions, and • Any expenditures used to figure any other credit by the amount of the credit on line 7 allocable to those expenditures (for purposes of figuring the other credit). Note. For credits entered on line 5, only the pass-through entity is required to make this reduction. Line 8 Recapture of Credit You may have to recapture part or all of the credit if, before the 10th tax year after the tax year in which your qualified childcare facility is placed in service, the facility ceases to operate as a qualified childcare facility or there is a change in ownership of the facility. However, a change in ownership will not require recapture if the person acquiring the interest in the facility agrees, in writing, to assume the recapture liability. See section 45F (d) for details. Any recapture tax is reported on the line of your tax return where other recapture taxes are reported (or, if no such line, on the “total tax” line). The recapture tax may not be used in figuring the amount of any credit or in figuring the alternative minimum tax. Member of Controlled Group or Business Under Common Control For purposes of figuring the credit, all members of a controlled group of corporations (as defined in section 52 (a)) and all members of a group of businesses under common control (as defined in section 52(b)), are treated as a single taxpayer. As a member, compute your credit for lines 2 and 4 as follows: • Compute your credit for line 2 based on your proportionate share of qualified childcare facility expenditures giving rise to the group’s credit for line 2. Enter your share of the credit on line 2. Attach a statement showing how your share of the credit was figured, and write “See Attached” next to the entry space for line 2. • Compute your credit for line 4 based on your proportionate share of qualified resource and referral expenditures giving rise to the group’s credit for line 4. Enter your share of the credit on line 4. Attach a statement showing how your share of the credit was figured, and write “See Attached” next to the entry space for line 4. Estates and trusts. Allocate the credit for employerprovided childcare facilities and services on line 7 between the estate or trust and the beneficiaries in the same proportion as income was allocated, and enter the beneficiaries’ share on line 8. If the estate or trust is subject to the passive activity rules, include on line 5 any credit for employer-provided childcare facilities and services 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. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be 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. The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is approved under OMB control number 1545-0074 and is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is shown below. Recordkeeping .. . . . . . . . . . 2 hr., 37 min. Learning about the law or the form . . . . 30 min. Preparing and sending the form to the IRS . . . . . . . . . . . .34 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.
Form 8882 (Rev. December 2013)
More about the Federal Form 8882 Other Tax Credit TY 2016
We last updated the Credit for Employer-Provided Childcare Facilities and Services in May 2017, so this is the latest version of Form 8882, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form 8882 directly from TaxFormFinder. You can print other Federal tax forms here.
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The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal Form 8882 from the Internal Revenue Service in May 2017.
Form 8882 is a Federal Other form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
Historical Past-Year Versions of Federal Form 8882
We have a total of five past-year versions of Form 8882 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Form 8882 (Rev. December 2013)
Form 8882 (Rev. December 2013)
Form 8882 (Rev. December 2013)
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