CMS Work Opportunity Tax Credit Newsletter November 2024

In this issue:

• What Can My WOTC Dashboard Show Me?
• WOTC Wednesday: Is it Worth it for Employers to Use WOTC Tax Credits?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Veterans
• Work Opportunity Tax Credit Statistics Arizona 2023
• Work Opportunity Tax Credit Statistics 2023
• #ICYMI

 

What Can My WOTC Dashboard Show Me?

Your Work Opportunity Tax Credit (WOTC) Dashboard gives you a real-time overview of the activity in your account. The Dashboard contains the following…

WOTC Wednesday: Is it Worth it for Employers to Use WOTC Tax Credits?

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday. Follow us on our new TikTok.

Other Recent #WOTCWednesday Questions Answered:

• Benefits of Switching to Paperless WOTC Screening
• How many Target Groups are there for WOTC?
• Does Your Software Check the Status of WOTC Applications?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Veterans

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #2 is the Qualified Veteran. 132,788 individuals were hired with certification from this group in 2023, 6.68 % of the total.

A “qualified veteran” is a veteran who is any of the following:

• A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date
• Unemployed for periods of time totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date
• Unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date
• Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces or
• Entitled to compensation for a service-connected disability and unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date

The maximum tax credit available for hiring a Qualified Veteran is $9,600.

 

Work Opportunity Tax Credit Statistics Arizona 2023

In 2023 the state of Arizona issued 31,015 Work Opportunity Tax Credit certifications.

Arizona issued 1.56% of all WOTC Tax Credits in 2023, SNAP Recipient was Arizona’s highest tax credit target group with 76% of certifications for that category. See historical data on Arizona and the Work Opportunity Tax Credit.

 

Work Opportunity Tax Credit Statistics 2023

The latest statistics for the Work Opportunity Tax Credit from 2023 have recently been released by the U.S. Department of Labor, and the data shows that a total of 1,988,528 total Work Opportunity Tax Credits were issued in the United States in 2023. This represents an almost 23% decrease over the previous year.