Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

Targeted hiring groups

  • Veterans

    To be considered a veteran for any of the groups listed below, the applicant must have served on active duty (other than active duty for training) for a period of more than 180 days in the Armed Forces of the United States or have been discharged or released from active duty for a service-connected disability, and not having, during the 60-day period ending on the hiring date, any day of extended active duty.

    Veteran receiving Supplemental Nutrition Assistance Program (SNAP) benefits - A veteran who is a member of a family that received SNAP benefits for at least a 3-month period during the 15-month period ending on the hiring date.

    For this target group, documentation of veteran status (usually Form DD-214) must be submitted.

    Unemployed veteran - A veteran unemployed for at least four weeks in the year prior to hire or a veteran unemployed for at least six months in the year prior to hire.

    For this target group, documentation of veteran status (usually Form DD-214) must be submitted.

    Disabled veteran - A veteran who is entitled to compensation for a service-connected disability and has a hiring date which is not more than one year after having been discharged or released from active duty or has aggregate periods of unemployment during the one-year period ending on the hire date that equals or exceeds six months.

    For this target group, documentation issued by the Department of Veterans Affairs certifying the veteran has a service-connected disability must be submitted.

  • Long-term Temporary Assistance for Needy Families recipients

    Members of families that have received Temporary Assistance for Needy Families (TANF) payments for at least 18 consecutive months ending on the hiring date; or have received TANF payments for any 18-month period since Aug. 5, 1997 and the earliest 18 month-period ended during the two years prior to the hiring date, or whose family within the two years prior to hiring became no longer eligible for TANF payments because federal or state law limited the maximum time those payments could be made.

  • Temporary Assistance for Needy Families recipients

    Members of families that received Temporary Assistance for Needy Families (TANF) payments for a total of at least nine of the 18 months before date of hire. The nine months do not have to be consecutive months.

  • Supplemental Nutrition Assistance Program (SNAP) recipients

    Individuals 18-39 years old who are members of a family that received SNAP benefits for at least six consecutive months before their date of hire, or for at least three of the five months before date of hire and their SNAP benefit eligibility expired, who are able-bodied adults without dependents (ABAWD) and are no longer eligible due to not meeting the work requirement of the Food Stamp Act of 1977.

  • Vocational rehabilitation referrals

    Persons who are employed within two years of their last date of service approved by a state or the U.S. Department of Veteran Affairs or received services under the Ticket to Work program.

    For veterans, please submit documentation of rehabilitative service dates.

  • Ex-felons

    Individuals whose date of felony conviction or release is not more than one year prior to date of hire or are currently enrolled in a work release program.

    Employers working with state or federal work release programs are encouraged to submit documentation for this target group.

    The Federal Bonding program provides fidelity bonds to anyone who is not eligible for commercial bonding. Bonding for six months – at no cost to the employee – may be obtained through the Idaho Department of Labor. Click here to learn more.

  • Supplemental security income (SSI) recipients

    Individuals who received SSI benefits for any month during the 60 days before date of hire.

  • Long-Term unemployment recipients

    Individuals who are in a period of unemployment which is not less than 27 consecutive weeks and includes a period in which the individual was receiving unemployment compensation under State or Federal law.

    The applicant must complete the Long-Term Unemployment Recipient Self-Attestation Form, ETA Form 9175.

  • Designated Community Resident and Summer Youth

    Since there are no Empowerment Zones or Rural Renewal Counties in Idaho, the Idaho WOTC Unit is unable to process certification requests for the Designated Community Resident or Summer Youth target groups.

Applying for the credit

The job applicant completes page one of IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Tax Credit) on or before the day a job offer is made.

IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Tax Credit) Form | Form instructions

If the job applicant indicates potential eligibility by checking one of the boxes on page one of IRS Form 8850, the employer completes the rest of the form no later than the day the job offer is made, and then ETA Form 9061 (Individual Characteristics Form) is completed.

ETA Form 9061 (Individual Characteristics Form) English | Spanish

Form 8850 and 9061 must be submitted to the WOTC portal within 28 calendar days after the new hire’s start date. Please be sure to keep documentation for your records.

Employer Portal
https://id.wotc-web.net/wa_login_emp.html

Consultant Portal
https://id.wotc-web.net/wa_login_consult.html

Idaho Department of Labor

Keep in mind:

  • To be eligible for WOTC, an employee cannot have worked for the employer previously or be a relative.
  • All applications must be postmarked or e-filed within 28 calendar days after the employee's start date. No exceptions can be made.
  • Some target groups may require additional documentation. Please be sure to refer to the Targeted Hiring Groups information above.
  • Qualified tax-exempt organizations described in IRC Section 501(c) and exempt from taxation under IRC Section 501(a) may claim the credit under the veteran target groups only.
  • There is a one-year time limit from the issue date of the determination to submit supporting documentation in order to appeal a denial.

For questions, please contact the Idaho WOTC Unit at WOTC@labor.idaho.gov.

For more information:

Visit the U.S. Department of Labor at https://www.doleta.gov/business/incentives/opptax/

Visit the IRS at https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit