IRS Reminds Employers of Expanded and Modified Work Opportunity Tax Credit (WOTC)

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IRS Reminds Employers of Expanded and Modified Work Opportunity Tax Credit (WOTC)

Posted by Kim Chen on May 12th, 2018

The WOTC allows employers that hire members of targeted groups who face employment barriers to claim a credit against income tax of a percentage of first-year wages. In a recent News Release, the IRS reminds employers there are now ten categories of eligible workers: qualified IV-A Temporary Assistance for Needy Families recipients; unemployed veterans, including disabled veterans; ex-felons; designated community residents living in Empowerment Zones or Rural Renewal Counties; vocational rehabilitation referrals; summer youth employees living in Empowerment Zones; food stamp (SNAP) recipients; Supplemental Security Income recipients; long-term family assistance recipients; and qualified long-term unemployment recipients. Before claiming the credit, employers must first request certification on Form 8850 within 28 days after the eligible worker begins. Though generally ineligible for the credit, tax-exempt organizations can claim the WOTC for hiring qualified veterans. For more information, go to www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit . News Release IR 2018-113 .