United States
"Work Opportunity Tax Credit (WOTC)"

What's the Work Opportunity Tax Credit ?

WOTC is Federal tax credit available to employers for hiring & employing individuals from targeted groups who have faced significant barriers to employment.

How Does the WOTC Program Work ?

DOL provides grant funding & policy guidance to state agencies that oversee the certification process while IRS is responsible for managing tax-related requirements for claiming.

Work Opportunity Tax Credit Target Groups

Target groups are defined groups specific to WOTC for which a new hire may be eligible, depending upon his or her personal circumstances.


Who Qualifies for Work Opportunity Tax Credit ?

Employers may qualify for the WOTC if they hire an individual who is a member of one of the target groups determined by the IRS.

Eligible Businesses for the WOTC

Any business, regardless of size or industry, may be eligible to claim tax credits under the Work Opportunity Tax Credit program.

How Much is the Work Opportunity Tax Credit ?

The amount of the tax credit varies based on the employee’s target group, total hours worked and total qualified wages paid.

How to Qualify a Worker under WOTC ?

During the hiring process, before or on the day the employee begins work, the employer and the applicant must complete IRS Form 8850 & DOL Form 906.

How to Apply for Work Opportunity Tax Credit ?

click here to apply

Taxable employers claim the credit as a general business credit on Form 3800 against their income tax by filing IRS Form 5884.