Employers use Form 8882 to claim the credit for qualified childcare facility and resource and referral expenditures. The credit may be claimed any time within 3 years from the due date of your return on either an original or amended return.
To access Form 8882 in the desktop program, from the main menu of the tax return (Form 1040), select:
- General Business Credit (3800)
- Current Year General Business Credits
- Form 8882 - Enter the required information in the fields provided.
If any portion of a prior year credit claimed on Form 8882 is required to be recaptured (see recapture of the credit below), from the main menu of the tax return (Form 1040), select:
- Other Taxes
- Other Additional Taxes
- Recapture of Other Credits
- Recapture of Employer-Provided Child Care (8882)
The credit is 25% of the qualified childcare facility expenditures plus 10% of the qualified childcare resource and referral expenditures paid or incurred during the tax year. The credit is limited to $150,000 per tax year.
Recapture of the Credit - You may have to recapture part or all of the credit if, before the 10th tax year after the tax year in which your qualified childcare facility is placed in service, the facility ceases to operate as a qualified childcare facility or there is a change in ownership of the facility. However, a change in ownership will not require recapture if the person acquiring the interest in the facility agrees, in writing, to assume the recapture liability.
Any recapture tax is reported on the line of your tax return where other recapture taxes are reported (or, if no such line, on the 'total tax' line). The recapture tax may not be used in figuring the amount of any credit or in figuring the alternative minimum tax.