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Work Opportunity Tax Credit: Reenacted and Ready to Be Claimed

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals facing significant barriers to employment. Some of these target groups include:

  • Veterans
  • Temporary Assistance for Needy Families (TANF) recipients
  • Food stamp recipients
  • Felons
  • Supplemental Security Income recipients
  • Summer youth employees

On December 18, 2015 the Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed into law by President Obama. This Act retroactively authorizes the WOTC from December 31, 2014 and remains effective until December 31, 2019.

Prospectively, effective January 1, 2016, qualified long-term unemployed individuals will be added to the listing of target groups.

The WOTC can reduce taxes by as much as $9,600 per eligible employee, depending on the target group. For more information or for guidance on if this credit applies to your firm, please contact your GBQ tax professional.

Article written by:
Justin Kossow, CPA
Assurance Senior