Do I qualify for the work opportunity tax credit?
The Work Opportunity Tax Credit creates jobs while helping employers think a little more carefully about who they hire. It’s available for companies that hire employees from disadvantaged and underrepresented groups, including:
- Unemployed veterans (including disabled veterans)
- Temporary Assistance for Needy Families (TANF) recipients
- Food stamp (SNAP) recipients
- People who live in “Empowerment Zones” or “Rural Renewal Counties”
- People who have been referred to vocational rehabilitation
- Supplemental Security Income recipients
- Summer youth employees
- Qualified recipients of long-term unemployment benefits
The idea behind the WOTC is to help workers in target groups gain economic independence. It’s a well-used program, with businesses claiming over $1 billion from work opportunity tax credits annually.
Get more specific detail about which employees are eligible here.