Expanded & Modified Work Opportunity Tax Credit

Employers can claim a credit against income tax of a percentage of first-year wages if they hire employees of specific groups who face employment hindrances.  Currently, according to the IRS, ten categories of eligible workers now exist: qualified IV-A Temporary Assistance for Needy Families recipients; unemployed veterans, including disabled veterans; ex-felons; designated community residents living in Empowerment Zones or Rural Renewal Counties; vocational rehabilitation referrals; summer youth employees living in Empowerment Zones; food stamp (SNAP) recipients; Supplemental Security Income recipients; long-term family assistance recipients; and qualified long-term unemployment recipients. Before a worker can claim the credit, Form 8850 must be filed by the employer to request certification within 28 days of the eligible worker’s first day of employment.  In addition, tax-exempt organizations can claim the WOTC for hiring qualified veterans.  For more information, go to www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit or contact one of our accounting professionals at Sink, Gordon & Associates.

Contributing Author:

Tom Martin, CPA  |  Email Tom has been with Sink, Gordon & Associates LLP since January 2008 when he interned with the firm and continued after graduation from Kansas State University in 2009 where he earned degrees in Accounting and Finance.  Tom serves individuals and small-medium sized business clients with their financial, accounting and tax needs and specializes in Tax Planning & Preparation, Consulting, the Agricultural & Real Estate Industries, and Sale, Merger & Acquisition Transactions.  Professionally, Tom is a member of the AICPA, the KSCPA, and PAAK, of which he is a past president. Outside of his work at SGA, Tom is a member of the Clay Center Rotary Club and enjoys spending time with his wife Jessica, and their four children.