Form 5884 - Work Opportunity Credit

Use Form 5884 to claim the work opportunity credit for qualified first- and/or second-year wages you paid to or incurred for targeted group employees during the tax year. Your business doesn't have to be located in an empowerment zone or rural renewal county to qualify for this credit. You can claim or elect not to claim the work opportunity credit any time within 3 years from the due date of your return on either your original return or an amended return. Partnerships, S corporations, cooperatives, estates, and trusts must file this form to claim the credit. All other taxpayers aren't required to complete or file this form if their only source for this credit is a partnership, S corporation, cooperative, estate, or trust. Instead, they can report this credit directly on Form 3800, General Business Credit.

Grant Deadline

2025-12-31

Funding Amount

Deadline not available

Type of Grant

Tax Credit, Hiring

Sectors

All Sectors

Demographics

Incorporation

Perks

Region Restriction

This grant is restricted to whole of United States

Keywords

tax credit, opportunity, First come first serve grant, qualified, Targeted Group, File Form, Second-Year S

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

Targeted group employee. An employee is a member of a targeted group if he or she began working for you before 2026 and is a:Long-term family assistance recipient,

• Qualified recipient of Temporary Assistance for Needy Families (TANF),
• Qualified veteran,
• Qualified ex-felon,
• Designated community resident,
• Vocational rehabilitation referral,
• Summer youth employee,
• Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) recipient,
• SSI recipient, or
• Qualified long-term unemployment recipient.

See the Instructions for Form 8850 and section 51(d) for details and restrictions.

Qualified Wages

Wages qualifying for the credit have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA) (determined without regard to the $7,000 FUTA tax wage base). If the work performed by any employee during more than half of any pay period qualifies under FUTA as agricultural labor, that employee’s wages subject to social security and Medicare taxes are qualified wages. For a special rule that applies to railroad employees, see section 51(h)(1)(B).

The amount of qualified wages for any employee is zero if:

• The employee didn't work for you for at least 120 hours,
• The employee worked for you previously,
• The employee is your dependent,
• The employee is related to you (see section 51(i)(1)), or
• 50% or less of the wages the employee received from you were for working in your trade or business.

Qualified wages do not include:

• Wages paid to or incurred for any employee during any period for which you received payment for the employee from a federally funded on-the-job training program;
• Wages paid to or incurred for a summer youth employee for services performed while the employee lived outside an empowerment zone;
• Wages paid to or incurred for a designated community resident for services performed while the employee lived outside an empowerment zone or rural renewal county;
• Wages paid to or incurred for services performed by a summer youth employee before or after any 90-day period between May 1 and September 15;
• Wages for services of replacement employees during a strike or lockout;
• Wages paid to or incurred for any employee after December 31, 2020, and before July 1, 2021, if you use the same wages to claim the coronavirus-related employee retention credit on an employment tax return such as Form 941;
• Wages paid to or incurred for any employee after March 31, 2021, and before October 1, 2021, if you use the same wages to claim the credit for qualified sick and family leave wages on an employment tax return such as Form 941; and
• Wages paid to or incurred for any employee generally after December 27, 2019, and before April 17, 2021, if you use the same wages to claim the 2020 qualified disaster employee retention credit on Form 5884-A.

Information about any future disaster credits that reduce qualified wages may be posted under "Recent Developments" at IRS.gov/Form5884.

Grant Application website

https://www.irs.gov/instructions/i5884

Contact