top of page

Working for You and Your Tax Credit

Photo: Nick Karounis

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.



bottom of page