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Federal Work Opportunity Tax Credit (WOTC)

(Wage Related Tax Incentive)

Work Opportunity Tax Credit (WOTC)
IRS Code Section 190, Barrier Removal
IRS Form 8850     Instructions for Form 8850
ETA Form 9061     ETA Form 9062
Show me the  WOTC  flowchart
Show me the  WOTC  flowchart

Follow the link to your question????

What is it?
Who is in the targeted groups?
How does it apply to persons with disabilities?
An Iowa Vocational Rehabilitation Services referral is certified by:
Who is eligible?
What is the amount?
What are the Minimum Employment Requirements?
What agency provides the WOTC certification?
How do I file for this credit?
Where can I obtain additional information?

What is it?  The Work Opportunity Tax Credit (WOTC), which replaces the Targeted Jobs Tax Credit (TJTC) program, provides a tax credit for employers who hire certain targeted groups.

Who is in the targeted groups? Low-income, vocational rehabilitation referrals, former AFDC recipients, veterans, ex-felons, food stamp recipients, summer youth employee, and SSI recipients. Click for detailed information

How does it apply to persons with disabilities? Employers that hire individuals who are SSI recipients or certified vocational rehabilitation (VR) referrals and meet all of the criteria described below may claim the WOTC.

  • having a physical or mental disability resulting in a barrier to employment, and

  • referred to an employer upon completion of or while receiving rehabilitative services, pursuant to the Vocational Rehabilitation Act of 1973, as amended.                                              Back to the Top

An Iowa Vocational Rehabilitation Services referral is certified by:
          Iowa SESA

Ms. Jeanne Sorensen-Wright
Workforce Development Administrative Center
150 Des Moines Street

Who is eligible? All businesses are eligible.

What is the amount?  An employer may take a tax credit of up to 40% of the first $6,000, or up to $2,400, in wages paid during the first 12 months for each new hire.

What are the Minimum Employment Requirements? Eligible employees must work 180 days or 400 hours; summer youth must work 20 days or 120 hours. A partial credit of 25% for certified employees who worked at least 120, but less than 400 hours may be claimed by the employer.   Back to the Top

What agency provides the WOTC certification?
          Iowa SESA
         
Ms. Jeanne Sorensen-Wright
          Workforce Development Administrative Center
          150 Des Moines Street
          Des Moines, IA 50319
          515-281-9010
         

How do I file for this credit?  Employers must apply for and receive certification from their State Employment Security Agency (SESA) that their new hire is a long-term family assistance recipient or member of one of the WOTC target groups before they can claim the Work Opportunity Tax Credit on their federal tax return.                                                                 Back to the Top

  1. Complete and submit IRS Form 8850, Prescreening Notice and Certification Request for the Work Opportunity to the above agency by the date of job offer, and

  2. Complete one of the following one-page U.S. Department of Labor forms, as appropriate:
              ETA Form 9061, "Individual Characteristics Form," if the new hire has not been given a conditional certification, or
              ETA  Form 9062, "Conditional Certification Form, "if provided to the job seeker by a participating agency such as the Vocational Rehabilitation agencies or the SESA/SWA, and 

  3. Mail the signed and dated IRS and ETA forms to the State Workforce Agency's WOTC Coordinator, Jeanne Sorenson-Wright, no later than 28 days after the new hire's employment-start date.
    For your convenience, the forms are available as follows:

  Form

Website address

Phone no.

IRS 8850 http://www.irs.gov/pub/irs-pdf/f8850.pdf 1-800-829-3676
ETA9061 http://www.doleta.gov/programs/pdf/Appendix_II__1_ETA_9061.pdf 1-800-281-9010
ETA9062 http://www.iowaworkforce.org/access/Conditional%20Certification.pdf 1-515-281-9010

Where can I obtain additional information?
Office of Chief Counsel, IRS
1111Constitution Avenue, NW
Washington, DC 20224
(202)622-3110
800-829-1040(voice) or 800-829-4059TTY
or
Iowa SESA
Ms. Jeanne Sorensen-Wright
Workforce Development Administrative Center
150 Des Moines Street
Des Moines, IA 50319
515-281-9010
                               Back to the Top

 

 

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