How much is the Work Opportunity Tax Credit?

Companies who hire qualifying employees can earn between $1,200 and $9,600 per employee under the Work Opportunity Tax Credit. The amount varies based on who the business hires from the eligible groups.

For example, if you hire a youth employee for a summer position, you could receive a tax credit of up to $1,200 for that hire. On the other end of the spectrum, if you hire a qualified veteran, you could receive a tax credit of up to $9,600.

The amount of tax credit you can receive is based on certain factors, including:

  • The target group of the individual
  • Duration of unemployment
  • Wages paid to the incoming worker
  • How many hours the employee works in their first year of employment

There is no cap on the number of target group employees a business can hire. So, the more qualifying employees you hire and retain, the higher your tax credit will be (woo!).

Was this post helpful?