Tax Credit Tools and Resources

The WOTC Categories of employees with barriers to employment

These are the categories that your employees may qualify for and earn you credits by simply working:

Any individual who:

  • Has received Temporary Assistance to Needy Families (TANF), or a successor program, for at least 18 consecutive months ending on the hiring date.
  • Has received TANF for a total of at least 18 months, whether or not the months are consecutive, beginning after August 5, 1997, and whose hiring date is not more than two years after the end of the earliest 18-month period.
  • Whose TANF eligibility expired, and has a hiring date within two years of the TANF eligibility expiration date, but after August 5, 1997.

2-Year Certification: $4,000 Max Credit first year, $5,000 Max Credit second year

Any individual who is receiving Supplemental Security Income (SSI) payments under Title XVI of the Social
Security Act for any month ending within the 60-day period ending on the hiring date. $2,400 Max Credit

Any individual who:

  • Is age 18 through 39 on the hiring date and is a member of a family who received food stamps/Supplemental Nutrition Assistance Program (SNAP) benefits for a consecutive six-month period ending on the hiring date.
  • Qualifies under federal law as an “able-bodied adult without dependents” (ABAWD 1), is 18 through 39 years of age on the hiring date, and received SNAP benefits for at least three months out of the five-month period ending on the hiring date and is no longer receiving SNAP benefits on the hiring date. $2,400 Max Credit

Any individual who is age 16 through 17 on the hire date and is a resident of a Federal Empowerment Zone
(EZ) or Rural Renewal County and has not been employed by the same employer prior
to the 90-day summer period between May 1 and September 15. $1,200 Max Credit

Any individual who has a physical or mental disability which results in a substantial barrier to employment,
and is hired within two years of receiving those services. $2,400 Max Credit

Any individual age 18 through 39 who, on the hire date is a resident of a designated Federal Empowerment Zone (EZ) or Rural Renewal County (RRC). $2,400 Max Credit

Any individual who:

  • Has been unemployed for at least 27 weeks consecutively leading up to the hire date
  • Has received unemployment compensation during any portion of the unemployment period of at least 27 weeks. $2,400 Max Credit

Any individual who:

  • Has been convicted of a felony under any statute of the United States or any state.
  • Has a hire date that is not more than one year after the last date on which the individual was convicted (if not incarcerated) or was released from prison. $2,400 Max Credit

Any qualified veteran who is:

  • A member of a family that received food stamps, i.e., Supplemental Nutrition Assistance Program (SNAP) benefits for at least a 3-month period during the 15-month period ending on the hiring date. $2,400 Max Credit
  • Entitled to compensation for a service-connected disability hired within one year of discharge or release from active duty. $4,800 Max Credit
  • Entitled to compensation for a service-connected disability and unemployed for a period or periods totaling at least 6 months of the year ending on the hiring date. $9,600 Max Credit
  • Unemployed for at least 4 weeks (but less than 6 months) during the one-year period ending on the hiring date. $2,400 Max Credit
  • Unemployed for at least 6 months or more within one year of the hiring date. $5,600 Max Credit

Note: To be considered a qualified veteran for this purpose the individual must meet these two standards:
1.) Served on active duty, not including training, in the U.S. Armed Forces for more than 180 days or have been discharged or released from active duty for a service-connected disability; and
2.) Not have a period of active duty, not including training, of more than 90 days that ended during the 60-day period concluding on the hiring date.

Any individual who is a member of a family that received TANF benefits for any 9-month period during the 18-month period ending on the hiring date. $2,400 Max Credit

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