The IRS has updated the definition of “qualified empowerment zone wages” contained in the Instructions for Form 8844, “Empowerment Zone Employment Credit.” Specifically, the update clarifies what wages aren’t included in the definition of qualified empowerment zone wages. The empowerment zone employment credit is equal to 20% of the first $15,000 of qualified wages paid to each qualified zone employee. Generally, qualified wages are those paid by an employer for services performed by an employee while he or she is a qualified zone employee. However, certain amounts paid to qualified zone employees are excluded from qualified wages. The next revision of Form 8844 will include the updates. Call or visit our website for more information! www.mjscpa.com/
