8844

Empowerment Zone Employment Credit

Agency
IRS
Revision
Rev. March 2020
Fillable fields
8
Pages
1
Official source
IRS form page
Checked
October 21, 2026
Fill 8844 online
Page 1 of form 8844

Form 8844: Empowerment Zone Employment Credit

Form 8844 is used to claim the empowerment zone employment credit. It is a business credit form completed by employers and by pass-through entities, and it is attached to the filer's tax return. The instructions say the credit is 20% of the employer's qualified zone wages (up to $15,000) paid or incurred during the calendar year for services performed by an employee while the employee is a qualified zone employee.

A qualified zone employee, the instructions say, performs substantially all of the services for that employer within an empowerment zone in the employer's trade or business, and has his or her principal residence within that empowerment zone while performing those services. The instructions list the urban and rural areas that were empowerment zones.

The instructions say to use the March 2020 revision for tax years beginning in 2021 or later, until a later revision is issued, and that the credit is extended to December 31, 2025. You can fill out Form 8844 free in your browser on this page and download it without an account.

Top of page 1 of Form 8844: Empowerment Zone Employment Credit, as printed by IRS

What's on Form 8844

Name and identifying number

The name(s) shown on the return and the identifying number.

Line 1: qualified zone wages

The total qualified empowerment zone wages paid or incurred during the current year.

Line 2: the 20% credit

Line 1 multiplied by 20% (0.20), with a pointer to the instructions on the wage deduction adjustment.

Line 3: pass-through credit

Empowerment zone employment credit from partnerships, S corporations, cooperatives, estates and trusts.

Line 4: total

Lines 2 and 3 added, with routing to Schedule K for partnerships and S corporations or to Form 3800, Part III, line 3 for others.

Lines 5 and 6: allocations

For cooperatives, estates and trusts: the amount allocated to patrons or beneficiaries, and the remainder reported on Form 3800, Part III, line 3.

How to fill out Form 8844

  1. 1

    Line 1

    Enter qualified zone wages paid or incurred in the calendar year that ended with or within your tax year. The instructions limit wages to $15,000 per employee, reduced by wages used for the work opportunity credit (Form 5884).

  2. 2

    Line 2

    Multiply line 1 by 20%. The instructions say the deduction for salaries and wages and certain educational and training costs is reduced by the line 2 credit amount.

  3. 3

    Line 3

    Enter credits from Schedule K-1 (Form 1065) box 15 code L, Schedule K-1 (Form 1120-S) box 13 code L, Schedule K-1 (Form 1041) box 13 code K, and Form 1099-PATR box 12.

  4. 4

    Line 4

    Add lines 2 and 3. Partnerships and S corporations stop and report on Schedule K. Cooperatives, estates and trusts go to line 5. All others report on Form 3800, Part III, line 3.

  5. 5

    Lines 5 and 6

    Estates and trusts allocate the credit in the same proportion as income. A cooperative allocates to patrons the credit in excess of its tax liability limit. Subtract line 5 from line 4 and report line 6 on Form 3800.

Why fill Form 8844 on indox

You get the real form, filled in a browser tab, with nothing standing between you and the finished PDF.

  • Fill the form right in your browser, no software to install
  • Free to fill and free to download, with no account
  • The official blank straight from the IRS, not a copy someone retyped
  • Works on a phone, tablet or computer

Filing Form 8844 and key limits

Attach to your return

The form says to attach it to your tax return.

Which revision

The instructions say to use the March 2020 revision for tax years beginning in 2021 or later, until a later revision is issued, and prior revisions for earlier tax years.

Credit period

The instructions say the credit is extended to December 31, 2025. The About page cites Rev. Proc. 2021-18 for extending empowerment zone designations until December 31, 2025.

Who is not a qualified employee

The instructions list exceptions, including a 5 percent owner, anyone employed for less than 90 days, and employees at certain facilities such as golf courses, country clubs and racetracks.

Wages counted once

The instructions say certain wages used for an employee retention credit on Form 941 or on Form 5884-A cannot also be used to figure a credit on Form 8844.

Controlled groups

The instructions say members of a controlled group of corporations and businesses under common control are treated as a single employer and share the credit.

Related forms

Who files Form 8844?

  • Employers with zone employees

    An employer that paid or incurred qualified zone wages to employees who work and live in an empowerment zone figures the credit on lines 1 and 2.

  • Partnerships and S corporations

    The instructions say partnerships and S corporations must file this form to claim the credit. Line 4 is then reported on Schedule K.

  • Partners and shareholders

    The instructions say others are generally not required to file this form if their only source for the credit is a partnership, S corporation, estate, trust or cooperative. They can report it directly on Form 3800.

  • Estates and trusts

    An estate or trust that can allocate the credit to beneficiaries files the form and enters the beneficiaries' share on line 5.

  • Cooperatives

    A cooperative that can or must allocate the credit to patrons files the form and enters the allocated amount on line 5.

The form is completed by the business that pays qualified zone wages, or by an owner or entity reporting a credit passed through to it.

Official sources and the blank

Do it all with indox

View all 94 tools

Questions about Form 8844

How much is the empowerment zone employment credit?

The instructions say it is 20% of the employer's qualified zone wages, up to $15,000 per employee, paid or incurred during the calendar year.

Who is a qualified zone employee?

An employee, full-time or part-time, who performs substantially all services for the employer within an empowerment zone and has a principal residence in that zone while doing so.

Do partners and shareholders file Form 8844?

The instructions say they are generally not required to if their only source for the credit is a partnership, S corporation, estate, trust or cooperative. They can report it directly on Form 3800.

Where are the empowerment zones?

The instructions list the urban and rural areas that were empowerment zones, such as parts of Chicago, IL, Detroit, MI and the Rio Grande Valley, TX.

How long does the credit apply?

The instructions say the credit is extended to December 31, 2025.

Does the credit change my wage deduction?

The instructions say the deduction for salaries and wages and certain educational and training costs is generally reduced by the line 2 credit amount.