Use the Work Opportunity Tax Credit Program in Your Job Search

If you are a member of one of the groups targeted by the Work Opportunity Tax Credit Program (WOTC), you can inform potential employers that they are eligible for a tax credit if you are hired.

Check the list below to see if you are eligible.

How Tax Credits Work

The Work Opportunity Tax Credit (WOTC) program, which includes the Welfare-to-Work Tax Credit, has two purposes:
  • To help individuals who qualify as members of a target group to get a job, and
  • To help employers who hire qualified individuals by giving them a credit on their federal taxes.

Who are Members of the Target Groups?

  • A member of a family that is receiving or has received Transitional Aid to Families with Dependent Children (TAFDC) benefits or Temporary Assistance to Needy Families (TANF) for any 9 months during the 18-month period that ends on the hiring date.
  • A veteran who is a member of a family that is receiving or has recently received food stamps and certain qualified disabled veterans.
  • A recently released ex-felon.
  • An 18 to 39 year old resident of one of the 105 federally designated Empowerment Zone/Renewal Communities.
  • A vocational rehabilitation referral who completed or is completing rehabilitative services from the Commonwealth of Massachusetts, an Employment Network, or the U.S. Department of Veterans Services.
  • A 16 to 17 year old Empowerment Zone/Renewal Community resident hired between May 1 and September 15 as a Summer Youth Employee.
  • An 18 to 39 year old member of a family that is receiving or has recently received food stamps.
  • A recipient of Supplemental Security Income (SSI) benefits.
  • A long term family assistance recipient.

What is the Amount of the Credit Available Through WOTC?

The WOTC credit can potentially be as much as:

  • $2,400 for each new adult hire;
  • $4,800 for each new disabled veteran hire;
  • $1,200 for each new summer youth hire; and
  • $9,000 for each new long-term family assistance recipient hired (this is claimed over a two-year retention period)

How Long Must the Individual Remain on the Job to Provide the Employer with a Tax Credit?

The person hired must be employed for at least 120 hours.

What is the Process for Applying for WOTC?

The first step is pre-screening to determine eligibility. The jobseeker or the employer must complete the Individual Characteristics Form, Work Opportunity Tax Credit and Welfare-to-Work Tax Credit, ETA 9061.

The employer and the jobseeker must complete the Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, Form 8850.

The employer and the jobseeker must sign the Form 8850, under penalty of perjury, attesting that the jobseeker is a member of a target group.

The employer then sends the forms to the Department of Career Services postmarked no later than the 28th day after the jobseeker begins work.

Mail the Form 8850 with the ETA 9061 attached to:

Work Opportunity Tax Credit Unit
Department of Career Services
19 Staniford Street
Boston, MA 02114

Telephone: 617-626-5353