Form 8882 is part of the general business credit. 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 either an original or amended return.
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.
A taxpayer receiving this credit from a passthrough entity reported on Schedule K-1 doesn't need to complete Form 8882, since the passthrough entity completed that form, but reports the credit directly on Form 3800, General Business Credit.
Completing Form 8882 in TaxSlayer ProWeb
To complete Form 8882 or enter the credit passthrough in the individual tax return in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Deductions
- Credits
- Less Common Credits
-
Employer-Provided Childcare Facilities and Services
- Employer-Provided Child Care Facilities and Services - Click BEGIN, then enter the required information in the fields provided. Also indicate if the credit is related to passive or nonpassive activity.
- Credit from Pass-Through Entities - Enter the passthrough entity's EIN and name, the amount of the credit, and indicate if the credit is related to passive or nonpassive activity.
- Credit Carryforwards/Carrybacks - If any credit is being carried forward or carried back to this tax year, enter the information needed, and indicate if the credit is related to passive or nonpassive activity.
Recapture of the Credit
The taxpayer may have to recapture part or all of the credit if, before the 10th tax year after the tax year in which the qualified childcare facility was placed in service, the facility ceased to operate as a qualified childcare facility or there was a change in the facility's ownership. 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.
To enter the recapture in the individual tax return in TaxSlayer ProWeb, from the Federal Section of the tax return (Form 1040) select:
- Other Taxes
- Other Additional Taxes
- Recapture of Other Credits
- Recapture of employer-provided child care (8882)
Note that the recapture tax may not be used in figuring the amount of any credit or in figuring the alternative minimum tax.
Additional Information: