The U.S. Internal Revenue Service Work Opportunity Credit provides employers with an incentive to hire certain individuals in groups targeted by Congress. To qualify for the credit, employers must complete IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit.
Download IRS Form 8850 from the link given in Resources. You can also download the IRS's instruction manual for that form.
Give the blank Form 8850 to the job applicant to fill out. You must provide the form to the applicant on or before the day you offer a job. Ensure that he or she signs the front of the form.
Complete Page 2 of Form 8850.
Return the form, along with a completed U.S. Department of Labor, Employment and Training Administration Form 9061 or 9062 Conditional Certification Work Opportunity Tax Credit to your State Workforce Agency, which you can look up on the list of state Work Opportunity Tax Credit Coordinators given in Resources. Forms 9061 and 9062 are available Labor Department at <a href="http://www.oewd.org/media/docs/WorkforceDevelopment/Tax%5fCredits/WOTC%5fConditional%5fCertification%5fForm%5f9062.pdf">http://www.oewd.org/media/docs/WorkforceDevelopment/Tax_Credits/WOTC_Conditional_Certification_Form_9062.pdf</a>. Do not send the form to the IRS.
Tips & Warnings
- If your county is in a rural area that lost population during the 1990s, you may be eligible for further tax incentives to hire within that county. See the instructions for IRS Form 8850 for details.
- The Work Opportunity Credit is available to employers who hire unemployed veterans discharged in the past five years and disconnected youth, long-term recipients of Temporary Assistance for Needy Families, veterans on food stamps, disabled veterans, other food stamps recipients, 16- to 17-year-olds during the summer within designated federal Empowerment Zones or Renewable Communities and ex-felons within a year of release from prison.
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- Department of Labor: Form 9061 - Individual Characteristics Form
- IRS: Form 8850 - Instructions
- IRS: Form 8850 - Pre-Screening Notice and Certification Request for the Work Opportunity Credit
- Department of Labor: Form 9062 - Conditional Certification, Work Opportunity Tax Credit
- Department of Labor: List of Work Opportunity Tax Credit Coordinators
Disabled Veterans & Food Stamps
The federal Supplemental Nutrition Assistance Program is overseen by individual states. Disabled veterans meeting income limits qualify for food stamps.