Work Opportunity Tax Credit 2024

Work Opportunity Tax Credit or better known as the WOTC is the tax credit for employers that hired individuals from certain targeted groups that have significant barriers to employment.

There are categories of eligible workers that can be hired to qualify for the credit. Generally, employers who hire veterans are eligible for the WOTC. In addition to veterans, employers who hire long-term unemployed individuals are also eligible for the WOTC. The credit amounts differ though.

Here are the eligibility requirements for veterans for employers to claim the Work Opportunity Tax Credit.

Veterans Eligibility Requirements for WOTC

Veteran who is entitled to compensation for service-connected disability and was unemployed for at least six months during the year prior to the hiring date.
Veteran who received food stamps (Supplemental Nutrition Assistance Program, or SNAP) for three consecutive months within the last 15 months.
Veteran who was unemployed for at least four weeks but less than six months during the year prior to the hiring date.
Veteran who was unemployed for at least six months within one year prior to the hiring date.

• The veteran is entitled to disabled compensated and was discharged from the military within one year or prior to the hiring date.
• The veteran has received SNAP benefits for three consecutive months within the last 15 months.
• The veteran was unemployed for at least four weeks but less than six months during the year prior to hiring.
• The veteran was unemployed at least for six months within the one year prior to hiring.

The requirements for long-term unemployed individuals

Any employee who has been unemployed for 27 consecutive weeks makes the employer eligible for the WOTC.

Individuals with felonies and disabilities

Hiring an individual who was convicted of a felony and hired within a year after their date of conviction or release is eligible for the WOTC. For workers with disabilities, the disabled person must be participating in a state or federal vocational rehabilitation program that had an individual written plan for employment in the two years before the hiring date.

Public assistance receiving individuals

The individuals who receive public assistance are mostly eligible for the WOTC. Whether or not you will be eligible is different for every individual as it depends on the public assistance received.