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)
Qualified veteran
Qualified ex-felon
Designated community resident
Vocational rehabilitation referral
Summer youth employee
Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) recipient
SSI 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