Work Opportunity Tax Credit Explained

An airman grabs pamphlets during a veterans career fair at Moody Air Force Base, Georgia.
An airman grabs pamphlets during a veterans career fair at Moody Air Force Base, Georgia, Oct. 19, 2017. (Airman Eugene Oliver/U.S. Air Force photo)

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire certain groups of Americans, including veterans, who have historically faced problems finding decent jobs.

The credit is designed to help groups such as disabled veterans, those receiving public assistance, disadvantaged youth and others. The credit ranges from $2,400 to $9,600, depending on the new hire's wages and which targeted group the employee was hired from.

Currently a veteran is qualified as a targeted group hire if they are:

  • Unemployed for a total of at least 4 weeks in the year preceding the hire.
  • A disabled veteran who has been out of the military for less than one year.
  • A member of a family receiving Supplemental Nutrition Assistance Program - SNAP (food stamps) for at least 3 months during the first 15 months of employment.
  • A disabled veteran participating in a state or federal vocational rehabilitation program.

To see the complete list of targeted groups visit the IRS website.

The WOTC is authorized until Dec. 31, 2025.

For more details visit the Department of Labor's website

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