Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire veterans and individuals from other eligible target groups with significant barriers to employment. Each year, employers claim over $1 billion in tax credits under the WOTC program. The success and growth of this income tax credit for business is beneficial for all who participate, while increasing America’s economic growth and productivity.
A new hire qualifies for a veterans target group, if the individual is:
OR
OR
Please note that to have veteran’s status to be eligible for WOTC, an individual must:
HOW TO APPLY
INFORMATION AND RESOURCES
1. Complete IRS Form 8850 by the day the job offer is made.
2. Complete ETA Form 9061, or complete ETA Form 9062 if the employee has been
conditionally certified as belonging to a WOTC target group by a State Workforce Agency,
Vocational Rehabilitation agency, or another participating agency.
3. Submit the completed and signed IRS and ETA forms to your State Workforce Agency. Forms
must be submitted within 28 calendar days of the employee’s start date.
4. Wait for a final determination from your State Workforce Agency. The determination will
indicate whether the employee is certified as meeting the eligibility for one of the WOTC
target groups.
5. After the target group employee is certified by the State Workforce Agency, file for the tax
credit with the Internal Revenue Service.
Visit the WOTC web-site, http://www.doleta.gov/wotc, for more information on eligibility
requirements, how to apply for the tax credit, and WOTC contacts in your state.
Visit the IRS web-site, http://www.irs.gov, for more information on how to claim the tax credit.
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