Tax Incentive Calculator
Calculate your Work Opportunity Tax Credit (WOTC) for hiring returning citizens and other qualifying employees
What is the Work Opportunity Tax Credit?
The WOTC is a federal tax credit available to employers who hire individuals from certain target groups who face significant barriers to employment. For hiring returning citizens, you can receive up to $2,400 per employee in tax credits.
Calculate Your Tax Credit
120-399 hours = 25% credit | 400+ hours = 40% credit
How to Claim
- Have employee complete IRS Form 8850 on or before day they begin work
- Submit Form 8850 to your state workforce agency within 28 days of hire
- Receive certification from your state agency
- Claim credit on Form 5884 when filing your business taxes
Key Benefits
- Reduces federal income tax liability dollar-for-dollar
- Can be combined with other business tax credits
- Available to employers of all sizes and industries
- No limit on number of eligible employees you can hire
Disclaimer: This calculator provides estimates only. Actual tax credits may vary based on individual circumstances. Consult with a tax professional or accountant to determine your exact eligibility and credit amount. WOTC regulations are subject to change.