Do I Qualify for the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit creates jobs while helping employers think a little more carefully about who they hire. It’s available for companies that hire employees from disadvantaged and underrepresented groups, including:

  • Unemployed veterans (including disabled veterans)
  • Temporary Assistance for Needy Families (TANF) recipients
  • Food stamp (SNAP) recipients
  • People who live in “Empowerment Zones” or “Rural Renewal Counties”
  • People who have been referred to vocational rehabilitation
  • Ex-felons
  • Supplemental Security Income recipients
  • Summer youth employees
  • Qualified recipients of long-term unemployment benefits

The idea behind the WOTC is to help workers in target groups gain economic independence. It’s a well-used program, with businesses claiming over $1 billion from work opportunity tax credits annually.

Get more specific details about which types of employees are eligible here.

This article provides general information and shouldn’t be construed as tax advice. Since tax rules may change over time and can vary by location and industry, please consult a CPA or tax advisor for advice specific to your business.