Instructions for IRS Form 8845 Indian Employment Credit

IRS Form 8845 Indian Employment Credit

This document contains official instructions for IRS Form 8845 , Indian Employment Credit - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8845 is available for download through this link.

FAQ

Q: What is IRS Form 8845?
A: IRS Form 8845 is used to claim the Indian Employment Credit.

Q: What is the Indian Employment Credit?
A: The Indian Employment Credit is a tax credit provided to businesses that employ Native Americans in certain designated areas.

Q: Who is eligible to claim the Indian Employment Credit?
A: Businesses that employ Native Americans on or near reservations or in certain designated areas are eligible to claim the Indian Employment Credit.

Q: What expenses can be claimed for the Indian Employment Credit?
A: Expenses related to qualified wages and employee benefits for eligible Native American employees can be claimed for the Indian Employment Credit.

Q: How do I fill out IRS Form 8845?
A: You need to provide information about your business, the employment of Native Americans, and calculate the credit based on qualified wages and employee benefits.

Q: When is the deadline to file IRS Form 8845?
A: IRS Form 8845 is usually filed along with the business's annual tax return. The deadline to file the tax return depends on the business entity type.

Q: Can I claim both the Indian Employment Credit and the Work Opportunity Tax Credit?
A: Yes, businesses can claim both the Indian Employment Credit and the Work Opportunity Tax Credit for hiring eligible employees, subject to certain limitations.

Q: Is there a limit to the amount of Indian Employment Credit that I can claim?
A: Yes, there is a maximum credit amount that can be claimed for each eligible employee. The exact amount is subject to change each year.

Q: Are there any restrictions on the use of the Indian Employment Credit?
A: The Indian Employment Credit cannot be used to offset certain taxes, such as the alternative minimum tax or the employer's share of Social Security tax.