Work Opportunity Tax Credit Program

Applying for the WOTC

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

WOTC helps targeted workers move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while participating employers are able to reduce their income tax liability.

The maximum tax credit ranges from $1,200 to $9,600, depending on the employee hired.
 

Who Can Participate in the WOTC Program?

Employers that hire and retain veterans and individuals, meeting the criteria for the specified target group, can submit applications to claim tax credits. Current or rehired employees are excluded.

Forms/More Resources

The Employer's Guide to the Work Opportunity Tax Credit (pdf)

WOTC Forms:

  1. IRS Form 8850 (to be completed by the day the job offer is made)

  2. IRS Form 8850 (to be completed after the individual is hired)

  3. ETA Form 9061 or ETA Form 9062 if the employee has been conditionally certified as belonging to a WOTC target group by a state workforce agency, Vocational Rehabilitation agency, or another participating agency.

  4. ETA Form 9175 Long-Term Unemployment Recipient Self-Attestation Form