Work Opportunity Tax Credit - WOTC

The Work Opportunity Tax Credit (WOTC) is a federal targeted group program developed to benefit both job seekers and the companies that employ them. The program offers tax credits with maximums of $1200 to $9600 depending on the group.


The program is modified frequently but is currently composed of the following 10 groups:

1) Qualified IV-A Recipient - Qualified long term recipients Temporary Assistance for Needy Families (TANF).

2) Qualified Veteran - Qualified Veterans that are either unemployed, receiving food stamps or disabled. There are five different credit levels.

3) Ex-Felon - Qualified ex-felons hired within a year of conviction or release from Jail

4) Designated Community Resident (DCR) - Qualified individuals between the ages of 18 and 40 residing in an Empowerment Zone or Rural Renewal County

5) Vocational Rehabilitation Referral - Qualified vocational rehabilitation referrals with a mental or intellectual disability

6) Summer Youth Employee - Qualified summer youth employees between the ages of 16 and 18 residing in an Empowerment Zone

7) Supplemental Nutrition Assistance Program (SNAP) Recipient - Qualified individuals receiving food stamps and are at least 18 years old and under 40

8)  Supplemental Security Income (SSI) Recipient - An individual is a “qualified SSI recipient” if a month for which this person received SSI benefits is within 60 days of the date this person is hired.

9) Long-Term Family Assistance Recipient - Long-Term Family Assistance Recipient – Qualified individuals that are members of a family that have received benefits for usually 18 months or longer

10) Qualified Long‐Term Unemployment Recipient ‐ A qualified longterm unemployment recipient is one who has been unemployed for not less than 27 consecutive weeks at the time of hiring and received unemployment compensation during some or all or the unemployment period.

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