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Work Opportunity Tax Credit

About

Federal Labor, U.S. Department of

The Work Opportunity Tax Credit (WOTC) provides a federal tax credit incentive of up to $9,600 for employers who hire members of target groups.

An employer may qualify for the WOTC by hiring individuals from the following nine target groups:
  • Qualified recipients of Temporary Assistance to Needy Families (TANF);
  • Qualified veterans from the following groups:
    1. People receiving Supplemental Nutrition Assistance Program (SNAP) benefits (previously Food Stamps); or
    2. Short-term unemployed veterans (four weeks - six months); or
    3. Service-related disabled veterans discharged from active duty within a year; or
    4. Long-term unemployed veterans (six months - one year) ; or
    5. long-term unemployed service-related disabled veterans;
  • Ex-felons hired no later than one year after conviction or release from prison;
  • Designated Community Resident – individuals ages 18 through 39 who reside in an Empowerment Zone, Renewal Community, or Rural Renewal County;
  • Vocational rehabilitation referrals - individuals with a mental or physical disability;
  • Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone, Enterprise Community, or Renewal Community;
  • Qualified SNAP (Food Stamp) recipients aged 18 through 39;
  • Qualified recipients of Supplemental Security Income (SSI); or 
  • Long-Term Family Assistance (LTFA) recipients.
Employers may claim the WOTC for the first 12 months of employment (this may cover two tax years for LFTA-WOTC). Any unused portion may be carried back one year and/or forward on future tax returns for 20 years or until all the credit is used, whichever comes first.

The credit can be claimed until 2020.

Additional resources

U.S. Department of Labor

Address
Frances Perkins Building


200 Constitution Ave., NW




Washington DC 20210
Website http://www.dol.gov
Phone (866) 487-2365

TTY: (877) 889-5627

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