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Work Opportunity Tax Credit (WOTC)

Employers in Washington state may be able to save money on their federal taxes as much as $2,400 per each qualifying new hire during their first year of employment through the Work Opportunity Tax Credit (WOTC) program.

 

Who Qualifies

Long-term TANF recipients

You can save up to $9,000 over two years if you hire someone who is a member of a family that:
  • Received Temporary Assistance to Needy Families (TANF) cash benefits for at least the previous 18 consecutive months.* 

    • or

  • Received 18 months of TANF since August 1997 and the 18th month is within the last two years.*

    • or

  • Stopped being eligible for TANF payments within the last two years because he or she exceeded the maximum time allowed for benefits.


Other target groups

You can qualify for tax credits up to $2,400 during the first year of their employment if you hire someone from one of the following groups:

A TANF recipient who is a member of a family that has received Temporary Assistance to Needy Families (TANF) cash benefits for at least nine of the last 18 months.*

A veteran who is:

  • A member of a family that has received SNAP (Supplemental Nutrition Assistance Program, formerly known as "Food Stamps") for at least three consecutive months in the last 15 months,* or
  • Receiving service-connected disability payments and is hired within one year of being discharged from active service, or has been unemployed for at least six months during the previous 12-months. Employers may receive tax credit up to $4,800 for a qualified disabled veteran.

An ex-felon who:

  • Was released from prison within the last year, or
  • Is participating in a work-release program.

An 18-to 39-year-old SNAP recipient who is a member of a family that has received SNAP for six consecutive months prior to the hire date.

A person with a disability who:

  • Is participating in a vocational rehabilitation program through the Division of Vocational Rehabilitation, Services for the Blind, the U.S. Veteran’s Administration or the Social Security Ticket-To-Work program, or
  • Received Supplemental Security Income (SSI) for any month in the previous 60 days.

* The person you hire must have personally received TANF (Welfare) or SNAP for one of the required months.

NOTE: Employers cannot claim WOTC credit for their relatives, former employees, or nonresident employees.

To request certification

Application forms must be post-marked within 28 days after the new employee started the job. We must have original signatures, so we cannot accept photocopies or faxes.

Follow these steps to apply.
  1. Have the applicant complete and sign the pre-screening form (IRS 8850, see form instructions).
  2. If the applicant has checked one of the boxes on IRS 8850 form, employer complete and sign Page 2 of the form.
  3. Complete the Individual Characteristics form (ETA 9061).
  4. Mail all completed forms to:
    Employment Security Department
    WOTC Administrative Unit
    P.O. Box 9046
    Olympia, WA 98507-9046

All late and incomplete applications will be denied.

For more information, contact us at 800-669-9271.

(Updated June, 2011)