Work Opportunity Tax Credit (WOTC)

Find savings to offset your federal tax liability using WOTC.

When you hire people from targeted categories and employ them for at least 120 hours, you can reduce your federal tax liability by up to $9,600 per person — and offset your alternative minimum tax (AMT).

Recent changes to the WOTC law allows claims on qualified employees hired from January 1, 2015, through December 31, 2019. It also expanded eligibility to include those who have been unemployed for a long period.

WOTC at work

You don’t have to figure out the filing on your own. Watch our short WOTC video to see how CLA can assess and identify qualified applicants for free. You only pay us for getting the candidates qualified on your behalf.

Eligible groups

  • Long-term unemployment recipients (27 consecutive weeks or more)
  • Short-term Temporary Assistance for Needy Families (TANF)
  • Qualified veteran (discharged from active duty within one year of hire date)
  • Disabled veteran
  • Unemployed disabled veteran
  • Unemployed veteran (four weeks)
  • Unemployed veteran (six months)
  • Qualified ex-felon
  • Designated resident of a Rural Renewal County or Empowerment Zone (EZ)
  • Vocational rehabilitation referral
  • Food stamp recipient (Supplemental Nutrition Assistant Program or SNAP)
  • Supplemental Security Income (SSI) recipient
  • Long-term family assistance recipient

Hiring qualifications

  • Temporary, seasonal, part-time and full-time workers who put in a minimum of 120 hours in their first 12 months of employment
  • New employees who have not worked for the hiring employer at any other time
  • Any job type is acceptable

Entity requirements

  • For-profit businesses of any size qualify
  • Tax-exempt organizations qualify for the veteran target groups only, and can get a refund on payments made on Form 941

Work Opportunity Tax Credit services

Taking advantage of tax credits can be a full-time job. At CliftonLarsonAllen (CLA),we work with employers to identify eligible employees, collect supporting information, submit the required tax forms, and compute the dollar amount of the credit.

We integrate technological solutions into your hiring process to minimize the time spent collecting the data. Our innovative, automated process will help you maximize your efficiencies.