The Work Opportunity Tax Credit Benefits Employers

The Work Opportunity Tax Credit benefits employers who hire people from targeted groups who consistently face significant barriers to employment. These groups include certain veterans, recipients of Supplemental Security Income benefits, ex-felons, summer youth employees, and vocational rehabilitation referrals.

This tax credit encourages workplace diversity and facilitates access to good jobs for American workers. Before claiming it, an employer must certify that their employee is from a qualified group. After getting the required certification, employers claim the tax credit as a general business credit on their taxes.

For more information – including how to certify and claim the credit, which employees are eligible, and limitations on the credit – go to IRS.gov/wotc.