WORK OPPORTUNITY TAX CREDIT (WOTC)

Work Opportunity Tax Credit (WOTC) Program

On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012, which authorizes an extension of the WOTC program:

• Continues authorization of all veteran target groups (including those implemented under the VOW to Hire Heroes Act) until December 31, 2013
• Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013
• Retroactively reauthorizes Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013

e-WOTC Account Information

 

The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that provides incentives to private for-profit employers to encourage the hiring of individuals from certain targeted groups of jobseekers who traditionally have difficulty finding employment.
Employers can reduce their federal income tax liability up to $9,600 during the first year of employment of a member of a targeted group, depending on the target group. There is no limit to the number of qualified employees for which an employer may receive this tax credit.

WOTC Targeted Groups

• Qualified Temporary Assistance to Needy Families Recipients
• Qualified Veterans/Disabled Veterans
• Qualified Unemployed Veterans
• Qualified Ex-felons
• Qualified Designated Community Residents (residing in an Empowerment Zone)
• Qualified Vocational Rehabilitation Referrals
• Qualified Summer Youth (residing in an Employment Zone)
• Qualified Food Stamp Recipients
• Qualified Supplemental Security Income Recipients
• Qualified Long-term Family Assistance Recipients
• Qualified Disconnected Youth