Credits for Affected Disaster Area Employers

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Instructions for Form 5884-A

Department of the Treasury
Internal Revenue Service

(Rev. December 2017)

Credits for Affected Disaster Area Employers
(For Employers Affected by Hurricane Harvey, Irma, or Maria)
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 5884-A and its instructions, such as legislation
enacted after they were published, go to
IRS.gov/Form5884A.

General Instructions
Purpose of Form

Use Form 5884-A to claim the employee retention credit.
The current year employee retention credit consists of the
following 3 credits.
Hurricane Harvey employee retention credit.
Hurricane Irma employee retention credit.
Hurricane Maria employee retention credit.
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.

Hurricane Harvey Employee
Retention Credit

An eligible employer who continued to pay or incur wages
after the employer’s business became inoperable
because of damage from Hurricane Harvey may be able
to claim a credit equal to 40% of up to $6,000 of qualified
wages paid to or incurred for each eligible employee.
Eligible employer. For this purpose, an eligible
employer is an employer who conducted an active trade
or business in the Hurricane Harvey disaster zone on
August 23, 2017, and whose trade or business was
inoperable on any day after August 23, 2017, and before
January 1, 2018, because of damage sustained from
Hurricane Harvey.
Eligible employee. For this purpose, an eligible
employee is an employee of an eligible employer whose
principal place of employment on August 23, 2017, with
the employer, was in the Hurricane Harvey disaster zone.
An employee isn’t an eligible employee for any
period during which the eligible employer is
CAUTION allowed a work opportunity credit for wages paid
to or incurred for the employee.

!

Qualified wages. For this purpose, qualified wages are
wages you paid to or incurred for eligible employees on
any day after August 23, 2017, and before January 1,
Oct 24, 2017

2018, during the period beginning on the date your trade
or business first became inoperable at the employee’s
principal place of employment immediately before August
23, 2017, and ending on the date your trade or business
resumed significant operations at that place. The amount
of qualified wages that may be taken into account is
limited to $6,000 per employee. This includes wages paid
or incurred whether the employee performs no services,
performs services at a place of employment other than the
principal place of employment, or performs services at the
principal place of employment before significant
operations have resumed.
Wages qualifying for the credit generally have the same
meaning as wages subject to the Federal Unemployment
Tax Act (FUTA). Qualified wages also include amounts
you paid or incurred for medical or hospitalization
expenses in connection with sickness or accident
disability. Qualified wages don’t include wages paid to or
incurred for your dependent or wages paid to or incurred
for an employee related to you.
For agricultural employees, if the work performed by
any employee during more than half of any pay period
qualifies under FUTA as agricultural labor, the first $6,000
of that employee’s wages subject to social security and
Medicare taxes are qualified wages.
Qualified wages for any employee must be reduced by
the amount of any work supplementation payment you
received under the Social Security Act for the employee.

Hurricane Harvey Disaster Zone

The following counties are in the Hurricane Harvey
disaster zone.
Texas. Aransas, Austin, Bastrop, Bee, Brazoria,
Caldwell, Calhoun, Chambers, Colorado, DeWitt, Fayette,
Fort Bend, Galveston, Goliad, Gonzales, Grimes, Hardin,
Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg,
Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton,
Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San
Patricio, Tyler, Victoria, Walker, Waller, and Wharton.

Hurricane Irma Employee Retention
Credit

An eligible employer who continued to pay or incur wages
after the employer’s business became inoperable
because of damage from Hurricane Irma may be able to
claim a credit equal to 40% of up to $6,000 of qualified
wages paid to or incurred for each eligible employee.

Eligible employer. For this purpose, an eligible
employer is an employer who conducted an active trade
or business in the Hurricane Irma disaster zone on
September 4, 2017, and whose trade or business was
inoperable on any day after September 4, 2017, and

Cat. No. 71046G

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before January 1, 2018, because of damage sustained
from Hurricane Irma.

Puerto Rico. Canovanas, Catano, Culebra, Dorado,
Fajardo, Loiza, Luquillo, Toa Baja, Vega Baja, and
Vieques.

Eligible employee. For this purpose, an eligible
employee is an employee of an eligible employer whose
principal place of employment on September 4, 2017, with
the employer, was in the Hurricane Irma disaster zone.

U.S. Virgin Islands. St. John and St. Thomas.

Hurricane Maria Employee Retention
Credit

An employee isn’t an eligible employee for any
period during which the eligible employer is
CAUTION allowed a work opportunity credit or Hurricane
Harvey employee retention credit for wages paid to or
incurred for the employee.

!

An eligible employer who continued to pay or incur wages
after the employer’s business became inoperable
because of damage from Hurricane Maria may be able to
claim a credit equal to 40% of up to $6,000 of qualified
wages paid to or incurred for each eligible employee.

Qualified wages. For this purpose, qualified wages are
wages you paid to or incurred for eligible employees on
any day after September 4, 2017, and before January 1,
2018, during the period beginning on the date your trade
or business first became inoperable at the employee’s
principal place of employment immediately before
September 4, 2017, and ending on the date your trade or
business resumed significant operations at that place.
The amount of qualified wages that may be taken into
account is limited to $6,000 per employee. This includes
wages paid or incurred whether the employee performs
no services, performs services at a place of employment
other than the principal place of employment, or performs
services at the principal place of employment before
significant operations have resumed.
Wages qualifying for the credit generally have the same
meaning as wages subject to the Federal Unemployment
Tax Act (FUTA). Qualified wages also include amounts
you paid or incurred for medical or hospitalization
expenses in connection with sickness or accident
disability. Qualified wages don’t include wages paid to or
incurred for your dependent or wages paid to or incurred
for an employee related to you.
For agricultural employees, if the work performed by
any employee during more than half of any pay period
qualifies under FUTA as agricultural labor, the first $6,000
of that employee’s wages subject to social security and
Medicare taxes are qualified wages.
Qualified wages for any employee must be reduced by
the amount of any work supplementation payment you
received under the Social Security Act for the employee.

Eligible employer. For this purpose, an eligible
employer is an employer who conducted an active trade
or business in the Hurricane Maria disaster zone on
September 16, 2017, and whose trade or business was
inoperable on any day after September 16, 2017, and
before January 1, 2018, because of damage sustained
from Hurricane Maria.
Eligible employee. For this purpose, an eligible
employee is an employee of an eligible employer whose
principal place of employment on September 16, 2017,
with the employer, was in the Hurricane Maria disaster
zone.
An employee isn’t an eligible employee for any
period during which the eligible employer is
CAUTION allowed a work opportunity credit, Hurricane
Harvey employee retention credit, or Hurricane Irma
employee retention credit for wages paid to or incurred for
the employee.

!

Qualified wages. For this purpose, qualified wages are
wages you paid to or incurred for eligible employees on
any day after September 16, 2017, and before January 1,
2018, during the period beginning on the date your trade
or business first became inoperable at the employee’s
principal place of employment immediately before
September 16, 2017, and ending on the date your trade or
business resumed significant operations at that place.
The amount of qualified wages that may be taken into
account is limited to $6,000 per employee. This includes
wages paid or incurred whether the employee performs
no services, performs services at a place of employment
other than the principal place of employment, or performs
services at the principal place of employment before
significant operations have resumed.
Wages qualifying for the credit generally have the same
meaning as wages subject to the Federal Unemployment
Tax Act (FUTA). Qualified wages also include amounts
you paid or incurred for medical or hospitalization
expenses in connection with sickness or accident
disability. Qualified wages don’t include wages paid to or
incurred for your dependent or wages paid to or incurred
for an employee related to you.
For agricultural employees, if the work performed by
any employee during more than half of any pay period
qualifies under FUTA as agricultural labor, the first $6,000
of that employee’s wages subject to social security and
Medicare taxes are qualified wages.

Hurricane Irma Disaster Zone

The following U.S. counties, municipalities, and islands
are in the Hurricane Irma disaster zone.
Florida. Alachua, Baker, Bradford, Brevard, Broward,
Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie,
Duval, Flagler, Gilchrist, Glades, Hardee, Hendry,
Hernando, Highlands, Hillsborough, Indian River,
Lafayette, Lake, Lee, Levy, Manatee, Marion, Martin,
Miami-Dade, Monroe, Nassau, Okeechobee, Orange,
Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam,
Sarasota, Seminole, St. Johns, St. Lucie, Sumter,
Suwannee, Union, and Volusia.
Georgia. Camden, Charlton, Chatham, Coffee, Glynn,
Liberty, and McIntosh.

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Instructions for Form 5884-A (December 2017)

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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 3 any Form 5884-A 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 must be allocated to patrons. For
details, see the Instructions for Form 8810.

Qualified wages for any employee must be reduced by
the amount of any work supplementation payment you
received under the Social Security Act for the employee.

Hurricane Maria Disaster Zone

The following U.S. municipalities and islands are in the
Hurricane Maria disaster zone.
Puerto Rico. All 78 municipalities in the Commonwealth
of Puerto Rico.
U.S. Virgin Islands. St. Croix, St. John, and St. Thomas.

Estates and trusts. Allocate the employee retention
credit on line 4 between the estate or trust and the
beneficiaries in the same proportion as income was
allocated and enter the beneficiaries' share on line 5.
If the estate or trust is subject to the passive activity
rules, include on line 3 any Form 5884-A 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.

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, figure your credit
based on your proportionate share of qualified wages
giving rise to the group’s employee retention credit. Enter
your share of the credit on line 2. Attach a statement
showing how your share of the credit was figured, and
enter “See attached” next to the entry space for line 2.

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.

Specific Instructions
Section A. Employee Retention Credit
Lines 1a, 1b, and 1c

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.

Enter the total qualified wages (defined earlier) paid or
incurred. Don’t enter more than $6,000 for each qualified
employee.

Line 3

Enter total employee retention 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 Z); or
Form 1099-PATR, Taxable Distributions Received
From Cooperatives, box 10, or other notice of credit
allocation.

The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for individual and business taxpayers filing this
form is approved under OMB control number 1545-0074
and 1545-0123 and is included in the estimates shown in
the instructions for their individual and business income
tax return. The estimated burden for all other taxpayers
who file this form is shown below.

Partnerships, S corporations, cooperatives, estates,
and trusts report the above credits on line 3. All other filers
figuring a separate credit on earlier lines also report the
above credits on line 3. All others not using earlier lines to
figure a separate credit can report the above credits
directly on Form 3800, Part III, line 1aa.

Recordkeeping . . . . . . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . . . . . .
Preparing and sending the form to the IRS . . .

Line 5

23 min.
18 min.
21 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.

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

Instructions for Form 5884-A (December 2017)

2 hr.,

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