Recent changes to the Work Opportunity Tax Credit (WOTC) could mean increased tax savings for you or your business.
WOTC is a federal tax credit available to employers for hiring individuals from certain targeted groups. WOTC is a dollar-for-dollar credit against federal income tax that is claimed on an individual owner’s tax return or C-corporation tax return. This tax credit puts actual dollars back into the pockets of business owners that can be used to invest back into the business, purchase capital expenditures or, in the case of an individual taxpayer, utilize for personal purposes.
Overview of the WOTC
The WOTC is available to employers who hire those in one or more targeted groups:
- IV-A recipients
- Qualified veterans
- Designated community residents
- Vocational rehabilitation referrals
- Summer youth employees
- Food stamp recipients
- SSI recipients
- Long-term family assistance recipients