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  • Michael Henninger

The Work Opportunity Tax Credit - Part 3

Part 3 of our series on the Work Opportunity Tax Credit:


- Which employees/hires count for WOTC? What are the "target groups"?


A: An employer may claim WOTC for an individual who is certified as a member of any of the following targeted groups:


- An individual who was formerly incarcerated or previously convicted of a felony;

- Recipients of state assistance under part A of title IV of the Social Security Act (SSA);

- Qualified Veterans;

- Residents of areas designated as empowerment zones or rural renewal counties;

- Individuals referred to an employer following completion of a rehabilitation plan or program;

- Individuals whose families are recipients of the supplemental nutrition assistance program under the Food and Nutrition Act (SNAP);

- Recipients of supplemental security income benefits under title XVI of the SSA;

- Individuals whose families are recipients of state assistance under part A of title IV of the SSA; and

- Individuals experiencing long-term unemployment.

- Qualified Summer Youth employee


As with anything IRS-related, there are nuances to each of these groups that need to be understood and known during the screening/certification process. But this is a powerful tool to help lower your tax bill and increase cash flow. We'll show you the numbers in a future edition...


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