Work Opportunity Credit covers ex-felons, veterans, food stamp recipients, etc

On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012 (the Act), which authorizes an extension of the WOTC program. In summary, the Act:

• Extends authorization for all veteran target groups (including those implemented under the VOW to Hire Heroes Act) to December 31, 2013.
• Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013.
• Retroactively reauthorizes the Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013.
•  Does NOT reauthorize the Recovery Act disconnected youth and Recovery Act unemployed veteran target groups.

The new forms have arrived: Form 8850, Form 8850 Instructions and Form 9061  These new forms need to be used for any Work Opportunity Tax Credit application filed after October 29, 2012.

For more information, please visit the USDOL Employment and Training Administration Web Site

Effective November 22, 2011 President Obama signed into law The Vow to Hire Heroes Act of 2011 which extends prior WOTC categories: the Veterans receiving SNAP benefits, Veterans with a service connected disability and Veterans with a service connected disability unemployed for at least 6 months, for a tax credit of up to $9,600 and created a new target group for Unemployed Veterans (similar to the Recovery Act of 2009) unemployed for at least 4 weeks for a tax credit of up to $2,400 or unemployed for at least 6 months for a tax credit up to $5,600.
 

Work Opportunity Tax Credit (WOTC)

• Work Opportunity Tax Credit (WOTC Overview) - Current Designated Groups
   
  • WOTC Group Specifics for Employees Hired On or after January 1, 2012 and before December 31, 2013 (retroactive re-authorization of target groups)
     
• How Do You Apply?
  
  
• WOTC Group Specifics and Tax Facts for Start Work Dates
   
  • On or after November 22, 2011 and before January 1, 2012
  • On or after January 1, 2011 and before November 22, 2011
  • On or after January 1, 2009 and before January 1, 2011
  • On or after May 26, 2007 and Before January 1, 2009
  • On January 1, 2007 and Before May 26, 2007
  • On or Before December 31, 2006
     
• How Do You Apply?

Work Opportunity Tax Credit (WOTC Overview)

Print Version (PDF, 107KB)

Earn a Federal tax credit per qualified individual hired through the WOTC administered by the Connecticut Department of Labor (DOL) Work Opportunity Tax Credit Unit. It's easy:
 

• You choose the new employee who is qualified for one of the designated groups.
• There is no limit on the number of people you can hire under this program.
• Only minimal paperwork must be filed to claim a tax credit.

The History of WOTC Group Specifics and Tax Facts for Start Work Dates

On or after November 22, 2011 and before January 1, 2013	On or after January 1, 2011,  but before November 22, 2011	On or after January 1, 2009 but before January 1, 2011
Qualified Veteran (VOW to Hire Heroes)	Temporary Assistance to Needy Families (TANF) recipient	Temporary Assistance to Needy Families (TANF) recipient
	Ex-felon	Ex-felon
	Food Stamp Recipient	Food Stamp Recipient
	Designated Community Residents	Designated Community Residents
	Summer Youth Employee	Summer Youth Employee
	Supplemental Security Income (SSI) recipient or Ticket-to-Work holder	Supplemental Security Income (SSI) recipient or Ticket-to-Work holder
	Qualified Veteran	Qualified Veteran
	Vocational Rehabilitation Referral or Ticket-to-Work holder	Vocational Rehabilitation Referral or Ticket-to-Work holder
	Long-Term Family Assistance Recipient (Effective January 1, 2007)	Disconnected YouthUse Self-Attestation Form on or after Oct 17/09