What is the Work Opportunity Tax Credit?

What is the Work Opportunity Tax Credit?

  • July 31, 2018
  • David Greene
  • Comments Off on What is the Work Opportunity Tax Credit?

The WOTC is a tax credit that allows employers who hire members of targeted groups who face employment barriers to claim a credit against income tax of a percentage of first-year wages.  This credit has recently been expanded by the IRS. They have issued a bulletin stating that there are now ten categories of eligible workers: unemployed veterans, ex-felons, designated residents in Empowerment Zones or Rural Renewal Counties, vocational rehabilitation referrals, summer youth employees living in Empowerment Zones, food stamp recipients, SSI recipients, and qualified long-term unemployment recipients, among others.  To claim the credit employers must first request certification on Form 8850 within 28 days of hiring the employee.

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