• SNAP Recipient: Family received SNAP for at least 3 months in the 15-month period before hiring
• Short-term Unemployment: Unemployed for at least 4 weeks (but less than 6 months) in the year before hiring
• Long-term Unemployment: Unemployed for at least 6 months in the year before hiring
• Service-connected Disability: Hired within 1 year of discharge
• Disability + Unemployment: Service-connected disability and unemployed for at least 6 months before hiring

• Family received TANF for at least 18 consecutive months ending on hiring date
• Received TANF for any 18-month period (post-Aug 5, 1997) & hired within 2 years after it ended
• Family ineligible for TANF due to time limits & hired within 2 years of losing benefits

• Age 18–39 at time of hiring
• Family received SNAP for the 6-month period ending on hiring date, OR
• Family received SNAP for at least 3 of the 5 months ending on hiring date

• Age 18–39 at time of hiring
• Primary residence in a federally designated Empowerment Zone or Rural Renewal County

• Person with a disability completing or who completed rehabilitative services from:
• A state-certified vocational rehabilitation agency
• An Employment Network under the Ticket to Work program
• The U.S. Department of Veterans Affairs

• Convicted of a felony under any statute
• Hired within 1 year of the conviction date or release date

• Received SSI benefits within 60 days of being hired

• Age 16–17 at time of hiring
• Works between May 1 and September 15
• Lives in a federally designated Empowerment Zone

• Unemployed for at least 27 consecutive weeks at the time of hiring
• Received unemployment compensation during some/all of that period

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from targeted groups who have consistently faced significant barriers to employment.

1. Screen Applicants: Use pre-screening questions during your hiring process to identify potentially eligible employees.

2. Submit Form 8850: Complete IRS Form 8850 (Pre-Screening Notice and Certification Request) on or before the job offer date.

3. 28-Day Deadline: Submit the form to your State Workforce Agency within 28 calendar days of the employee's start date.

4. Submit ETA Form 9061/9062: In addition to Form 8850, submit the appropriate Department of Labor form.

5. Receive Certification: Wait for the SWA to review and approve your request.

6. Claim on Tax Return: Use Form 5884 to claim the credit on your federal tax return.

Businesses can receive this tax credit for hiring staff that belong to specific targeted groups. Historically, those in the targeted groups have faced employment barriers, and by employing them, you are helping to alleviate those barriers and contribute toward their economic stability. This credit is only for new hires, and you must request and receive certification that the person belongs to a targeted group.

The WOTC is for employers who hire individuals with barriers to employment, including certain veterans, SNAP/TANF recipients, ex-felons, and long-term unemployed. See above for full details.

• Employee must not have worked for you previously
• Employee cannot be your dependent or relative (as defined in Section 51(i)(1) of the Internal Revenue Code)
• At least 50% of the wages paid must be for working in your trade or business
• Wages used for other employment credits cannot be used for the WOTC

Unlike a tax deduction that only reduces your taxable income, a tax credit directly reduces the amount of tax you owe, dollar-for-dollar. This makes the WOTC particularly valuable to businesses of all sizes. For example, if you owe $10,000 in taxes and qualify for a $2,400 WOTC credit, your tax liability would be reduced to $7,600.