The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who invest in American job seekers who have consistently faced barriers to employment. Employers may meet their business needs and claim a tax credit if they hire an individual who is in a WOTC targeted group.
Employers must apply for and receive a certification verifying the new hire is a member of a targeted group before they can claim the tax credit. After the required certification is secured, taxable employers claim the WOTC as a general business credit against their income taxes, and tax-exempt employers claim the WOTC against their payroll taxes.
WOTC is authorized until December 31, 2025 (Section 113 of Division EE of P.L. 116-260 -- Consolidated Appropriations Act, 2021).
|WOTC Fact Sheet*||Work Opportunity Tax Credit: Quick Reference Guide for Employers|
|WOTC Eligibility Desk Aid||Individual Characteristics Form - ETA Form 9061 *|
Long-Term Unemployment Recipient Self-Attestation Form
|IRS Form 8850 Instructions *|
|Alabama WOTC on-line for employers||Alabama WOTC on-line for Consultants|