Employers! Earn the Welfare-to-Work and Work Opportunity Tax Credits! Employers make the hiring decisions No limit to the number of new hires who can qualify their employer for these tax savings Minimal paperwork to claim the tax credits

The Welfare-to-Work Tax Credit for hiring long-term welfare recipients is as much as $8,500 per new hire.
The Work Opportunity Tax Credit (WOTC) for hiring all WOTC target groups, except Summer Youth Employees, is up to $2,400 for each new hire.

What do you have to do?
Hire from among these nine groups of job seekers to qualify for the Welfare-to-Work Tax Credit or the WOTC

1. Long-term welfare recipients (WTW)
2. Other welfare recipients (WOTC)
3. Veterans (WOTC)
4. 18-24 year-old food stamp recipients (WOTC)
5. 18-24 year-old EZ/EC residents (WOTC)
6. 16-17 year-old EZ/EC residents (WOTC)
7. Vocational rehabilitation referrals (WOTC)
8. Ex-felons (WOTC)
9. SSI recipients (new WOTC)

Applying for Welfare-to-Work or Work Opportunity Tax Credit Certification Takes Three Simple Steps

• Complete the one-page IRS Form 8850, “Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Tax Credits,” by the date of the job offer, and

• Complete either the one-page U.S. Department of Labor:

* ETA Form 9062, “Conditional Certification Form,”
if provided to the job seeker by a participating agency,
such as the Job Corps, or

*ETA Form 9061, “Individual Characteristics Form,”
if the new hire has not been given
a conditional certification, and

• Mail the signed IRS and the ETA form to the state employment agency’s WOTC Coordinator.
  NOTE: The IRS form must be mailed to the state WOTC Coordinator not later than 21 days after the new hire’s start date.

You can download these forms (in Adobe Acrobat format), by clicking on the form you need.
Need Adobe Acrobat Reader for free? You can get that also!

Form 8850

Form 9061

Please note:
No tax credit can be claimed for wages paid to relatives. No tax credit can be claimed for federally subsidized on-the-job-training; however, wages paid after the subsidy expires can qualify for the credits. The Welfare-to-Work Tax Credit and WOTC cannot both be claimed for the same individual in the same taxable year.

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