Work Opportunity Tax Credit
If you’re expanding your workforce, you may be eligible for a special tax credit if the employee(s) you hire are in a targeted group. It’s been estimated that from 10% to 20% of employees could fall within these groups:
Long-term family assistance recipient
Qualified recipient of Temporary Assistance for Needy Families (TANF)
Designated community resident
Vocational rehabilitation referral
Summer youth employee
Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) recipient
Qualified long-term unemployment recipient
The amount of the credit varies with the targeted category. It ranges from $2,400 for most categories (less for summer youth) to $9,600 for a veteran with a service-connected disability.
To qualify for the credit, you must submit Form 8850, Pre-Screening Notice and Certification Request to your state workforce agency no later than 28 days after a new employee begins work. If you fail to do this, you can’t take the credit even if the new employee would otherwise fall into a targeted group.
You can learn more about the work opportunity credit from Swain Consulting LLC at 513-881-1753 ext 4. www.swainconsultingllc.com