Form. 5884. (Rev. December 2016) Department of the Trea

Preparation Read the information provided in the scenario below. The required tax forms to be completed are attached and include: 1040. Schedule A. 2441. 3800. 5884. 6251. 8826. Part 1 Complete the official worksheet (attached) for each tax credit to demonstrate eligibility. Part 2 Complete Schedule A. Enter data from Schedule A into the 1040 and calculate the tax owed or amount of any refund. Scenario: Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in 2018. They have three children, Ashley, age 9; Patrick, age 6; and John, age 18. Social Security numbers are: Jacob,***********4; Taylor,***********7; Ashley,***********4; Patrick,***********1; John,***********9. Jacob is self-employed as a contractor. 2018 net income: $133,000. Clients owe him a total of $53,000 for work completed in 2018. 2018 estimated tax payments: $25,000. Jacob and Taylor bought their first house in 2018. He is using a bedroom in his house as a home office. The room is

Form 5884
(Rev. December 2016)
Department of the Treasury
Internal Revenue Service
Work Opportunity Credit
▶ Attach to your tax return.
▶ Information about Form 5884 and its separate instructions is at www.irs.gov/form5884.
OMB No. 1545-0219
Attachment
Sequence No.77
Name(s) shown on return Identifying number
1 Enter on the applicable line below the total qualified first- or second-year wages paid
or incurred during the tax year, and multiply by the percentage shown, for services of
employees who are certified as members of a targeted group.
a Qualified first-year wages of employees who worked
for you at least 120 hours but fewer than 400 hours. $ × 25% (0.25) 1a
b Qualified first-year wages of employees who worked
for you at least 400 hours. . . . . . . . . . $ × 40% (0.40) 1b
c Qualified second-year wages of employees certified as
long-term family assistance recipients .. . . . . $ × 50% (0.50) 1c
2 Add lines 1a, 1b, and 1c. See instructions for the adjustment you must make to
salaries and wages . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Work opportunity credit from partnerships, S corporations, cooperatives, estates, and
trusts (see instructions). . . . . . . . . . . . . . . . . . . . . . . 3
4 Add lines 2 and 3. Cooperatives, estates, and trusts, go to line 5. Partnerships and
S corporations, stop here and report this amount on Schedule K. All others, stop here
and report this amount on Form 3800, Part III, line 4b. . . . . . . . . . . . 4
5 Amount allocated to patrons of the cooperative or beneficiaries of the estate or trust
(see instructions) .. . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Cooperatives, estates, and trusts, subtract line 5 from line 4. Report this amount on
Form 3800, Part III, line 4b. . . . . . . . . . . . . . . . . . . . . . 6
For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 13570D Form 5884(Rev. 12-2016)
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