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2022 Schedule ME
SFN 28712 (12-2022), Page 2
amount of military pay received
Line 1 - Mobilization period during the period of mobilization can
Who is eligible? Enter the beginning and ending dates be determined from the employee’s
You may be eligible for an income during your 2022 tax year that the military Leave and Earnings
tax credit if you have an eligible eligible employee was in mobilization Statement(s).
employee who was mobilized for status.
active duty in the U.S. armed forces Example 4. Assume the same facts as
during the tax year. Example 1. You file on a calendar in Example 3 (in the line 2 instruction).
year basis (January through Based on the employee’s military
An eligible employee is an individual December), and the eligible employee’s Leave and Earnings Statements, the
who is: mobilization period runs from employee received military wages of
a legal resident of North Dakota, October 1, 2022, to November 30, $3,750 during the period October 1,
a member of the National Guard 2023. Enter “10/01/2022” and 2022, through December 31, 2022.
or a reserve component of any “12/31/2022” in the spaces for “From” Enter $3,750 on line 3.
branch of the U.S. armed forces, and “To,” respectively.
and Example 2. You file on a calendar Line 5 - Employer’s actual wage
mobilized for federal active duty basis, and the employee’s mobilization payments
under Title 10 of the United States period began on March 1, 2021, Enter the amount of wages you
Code during the employer’s tax and ended June 30, 2022. Enter actually paid to the eligible employee
year. “1/01/2022” and “6/30/2022” in the during the period of mobilization
applicable spaces.
You are eligible for the credit if, (shown on line 1).
during the period of mobilization: The credit is not allowed if no part Example 5. Assume the same facts as
of the mobilization period falls in Example 3 (in the line 2 instruction).
you continue to pay part or all of within your 2022 tax year. During the mobilization period, you
the eligible employee’s wages, and
continued to pay a reduced gross wage
the federal active duty wages of $250 plus a 401k contribution match
received by the eligible employee Line 2 - Employer’s deemed wages
are less than the wages that for mobilization period of $10 on each pay day. Enter $1,560
you would have paid if the Enter the amount of wages you would on line 5. This is the sum of the gross
eligible employee had not been have paid to the eligible employee wages of $1,500 ($250 x 6) plus your
mobilized. during the period of mobilization matching 401k contributions of $60
(shown on line 1) if the employee ($10 x 6).
For this purpose, “wages” means the had not been mobilized.
sum of:
Example 3. You are a calendar year Line 11 - Prior year carryover
gross wages before reduction filer, and you have an eligible employee Enter the portion of an unused
by payroll taxes, elective who was mobilized from October 1, mobilized employee income tax credit,
contributions to a defined 2022, through December 31, 2022. if any, from the 2021 tax year. If filing
contribution plan, and any other Prior to mobilization, you paid the Form 58 or 60, enter zero.
payroll deduction, plus employee gross wages of $1,500
employer’s contributions to the on the 15th and the last working
employee’s defined contribution day of each month. Under a salary Line 13 - Current year credit
plan. reduction arrangement, the employee Enter on this line the portion of the
contributed $60 to a 401k plan each total available tax credit on line 12
“Defined contribution plan” means pay period, which you matched. The that is being used to reduce the
a 401(k), 403(b), profit-sharing, 401k contributions were deposited 2022 tax. If there is an unused credit
stock bonus, money purchase, or into the plan account each pay day. carryforward from a prior tax year on
any other plan meeting the definition Enter $9,360 on line 2, which is the line 11, use the credits in the order
of a defined contribution plan under amount you would have paid had the that is most beneficial. If the taxpayer
Internal Revenue Code Section 414. employee not been mobilized. This is is a partnership, S corporation, or
the sum of the gross wages of $9,000 limited liability company treated like a
($1,500 x 6) plus your matching 401k partnership or S corporation, enter the
contributions of $360 ($60 x 6). amount from line 12, and skip line 14.
Specific line instructions
Eligible employee information Line 3 - Federal active duty pay Line 14 - Carryover to 2023
Enter the name and social security Enter the amount of wages the eligible If the total available tax credit on
number for each eligible employee. employee actually received during line 12 exceeds the amount on line 13,
If you have more than three eligible the period of mobilization (shown on enter on this line the portion of the
employees, complete additonal line 1) for his or her federal active excess that is eligible for carryover to
schedules as needed. duty service. You will need to obtain the 2023 tax year. Unused credits from
this information from the employee or the 2020, 2021 and 2022 tax years are
his or her designated representative, eligible for carryover to 2023. If filing
depending on the situation. The Form 58 or 60, enter zero.
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