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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 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 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  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