Form 8932 (Rev. 12-2019)
Page 2
Disallowance for Failure To Comply With
Employment or Reemployment Rights of
Members of the Reserve Components of the
Armed Forces of the United States
No credit will be allowed to a taxpayer for:
• Any tax year in which the taxpayer is under a final order,
judgment, or other process issued or required by a
district court of the United States under section 4323 of
title 38 of the United States Code with respect to a
violation of chapter 43 of title 38; and
• The 2 succeeding tax years.
Specific Instructions
Line 1
Enter the total amount of eligible differential wage
payments made to qualified employees during the tax
year. Do not include more than $20,000 of payments for
any employee.
Line 2
Generally, you must reduce your deduction for salaries
and wages by the amount on line 2, even if you cannot
take the full credit this year because of the tax liability
limit. If you capitalized any costs on which you figured the
credit, reduce the amount capitalized by the credit
attributable to these costs.
Line 3
Enter total credits for employer differential wage
payments from:
• Schedule K-1 (Form 1065), Partner’s Share of Income,
Deductions, Credits, etc., box 15 (code P);
• Schedule K-1 (Form 1120-S), 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 Q); or
• Form 1099-PATR, Taxable Distributions Received From
Cooperatives, box 12 (box 11 for 2019), or other notice of
credit allocation.
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 1w.
Line 5
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 first figure its tax liability. While any
excess is allocated to patrons, any credit recapture
applies as if the cooperative had claimed the credit.
If the cooperative is subject to the passive activity
rules, include on line 3 any Form 8932 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.
Estates and trusts. Allocate the credit for employer
differential wage payments 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 8932 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.
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.
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.
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.
Recordkeeping . . . . . . . . . . 1 hr., 54 min.
Learning about the
law or the form . . . . . . . . . . . . 30 min.
Preparing and sending the form
to the IRS . . . . . . . . . . . . . . 33 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.
