Get 1999 Form 8845. Indian Employment Credit

An employer could claim a credit for certain wages and health insurance costs paid or incurred in tax years beginning before January 1, 2022, for qualified employees and their spouses who were enrolled members of an Indian tribe ( Code Sec. 45A).

Employers can claim an annual federal tax credit of up to $4,000 (20% of 20,000 qualified wage cap) per qualifying employee. There is no limit to the total value that can be claimed through the credit.

Use Form 8845 to claim the Indian employment credit if you paid or incurred qualified wages and/or qualified employee health insurance costs to/for a qualified employee during your tax year. Partnerships, S corporations, cooperatives, estates, and trusts must file this form to claim the credit.

An employer could claim a credit for certain wages and health insurance costs paid or incurred in tax years beginning before January 1, 2022, for qualified employees and their spouses who were enrolled members of an Indian tribe ( Code Sec. 45A).

An employee shall be treated as a qualified employee for any taxable year of the employer only if more than 50 percent of the wages paid or incurred by the employer to such employee during such taxable year are for services performed in a trade or business of the employer.

Eligibility highlights The credit is available to eligible employers that paid qualified wages to some or all employees after March 12, 2020, and before January 1, 2022. Eligibility and credit amount vary depending on when the business impacts occurred.

Purpose of Form Use Form 8845 to claim the Indian employment credit if you paid or incurred qualified wages and/or qualified employee health insurance costs to/for a qualified employee during your tax year. Partnerships, S corporations, cooperatives, estates, and trusts must file this form to claim the credit.

Indian Employment Credit (section 45A) In general, this credit may entitle an employer to a 20% tax credit on a portion of the qualified wages and employee health insurance costs paid to an enrolled member of an Indian tribe or the enrolled member's spouse.