The Work Opportunity Tax Credit (WOTC) is an incentive to private, for profit employers to hire individuals from nine identified targeted groups, among them Unemployed Veterans.
Qualified Veterans are those that are:
- Discharged after serving on active duty for more than 180 days, or released from active duty for a service connected disability. They must not have served on active duty during the 60 days preceding the date hired by an employer; AND
- A member of a family that has received food stamps for at least 3 consecutive months in the last 15 months OR
- Receiving compensation for a service-connected disability hired within one year of being discharged from active service OR
- Receiving compensation for a service-connected disability and have been unemployed for at least 6 of the previous 12 months
Who Benefits From This Program?
The Work Opportunity Tax Credit (WOTC) program has two purposes:
- To help individuals who qualify as members of a target group to get a job, and
- To help employers who hire qualified individuals by giving them a credit on their federal taxes.
The Work Opportunity Tax Credit saves employers money and requires little paperwork. Helping those most in need find and retain jobs and gain on-the-job experience benefits all employers and increases America's economic growth and productivity.
Use the Work Opportunity Tax Credit Program in Your Job Search
If you are a veteran meeting the criteria above, you can inform potential employers that they are eligible for a tax credit if you are hired.
- For individuals who appear eligible, employers must submit a Request for Certification. A Request for Certification consists of completing (1) the Pre-Screening Notice, IRS Form 8850, and (2) the Individual Characteristics Form, ETA-9061.
- An employer must employ the WOTC eligible worker for a minimum of 120 hours to qualify for a tax credit.
- Employers will forward completed forms to the appropriate state or local office for processing.
The WOTC program is administered at the federal level by the Employment and Training Administration, U.S. Department of Labor, and the Internal Revenue Service (IRS), U.S. Department of Treasury.
