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Lindsay Morton • April 25, 2022
Which Candidates Qualify Employers for the Work Opportunity Tax Credit?
The Work Opportunity Tax Credit (WOTC) is a federal incentive program that encourages employers to hire employees from certain groups who have historically faced significant barriers to employment. The tax credits, worth up to $9,600 per new hire, can significantly impact an employers' bottom-line.
Businesses may be wondering which candidates qualify and the amount of tax credits they can receive. Below is a breakdown of eligible WOTC target groups and their credit caps:
Veteran Target Groups
- $9,600 - Veterans with a service-connected disability who have been unemployed for at least 6 months in the past year
- $4,800 - Veterans with a service-connected disability and hired within 1 year of their discharge/release date
- $5,600 - Veterans who have been unemployed for at least 6 months
- $2,400 - Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits
- $2,400 - Veterans who have been unemployed for at least 4 weeks but less than 6 months
Non-Veteran Target Groups
- $9,000 - Long-Term Family Assistance recipients who are members of a family that has received TANF benefits for at least 18 consecutive months
- $2,400 - Temporary Assistance for Needy Families (TANF) recipients
- $2,400 - SNAP recipients
- $2,400 - Long-term unemployed
- $2,400 - Supplemental Security Income recipients
- $2,400 - Vocational rehabilitation referrals
- $2,400 - Ex-felons
- $2,400 - Designated community residents
- $1,200 - Summer Youth program participants who are 16 to 17 years old, work between May 1 and September 15, and live in a designated community area
Have Questions or Need More Information?
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