CMS Work Opportunity Tax Credit Newsletter July 2024

In this issue:

• What Can My WOTC Dashboard Show Me?
• WOTC Wednesday: What is the Work Opportunity Tax Credit – WOTC?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance Recipient
• Work Opportunity Tax Credit Statistics Illinois 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: What is the Work Opportunity Tax Credit – WOTC?

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:

• Is there a minimum wage for WOTC Tax Credits?
• Is it Worth it for Employers to Use Work Opportunity Tax Credits?
• Are employees eligible if they check more than one box on their WOTC forms?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance Recipient

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #10 is the Long-Term Family Assistance Recipient. 65,565 individuals were hired with certification from this group in 2023, 3.30% of the total.

A “long-term family assistance recipient” is an individual who, at the time of hiring, is a member of a family that meet one of the following conditions:

• Received assistance under an IV-A program for a minimum of the prior 18 consecutive months
• Received assistance under an IV-A program for a minimum 18-month period beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period or
• Ceased to be eligible for assistance under an IV-A program because a federal or state law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation of such assistance

The maximum tax credit available for hiring a Long-Term Family Assistance Recipient is $9,000 which is taken over two years.

 

Work Opportunity Tax Credit Statistics Illinois 2023

In 2023 the state of Illinois issued 109,432 Work Opportunity Tax Credit certifications. Illinois issued 5.52% of all WOTC Tax Credits in 2023, SNAP Recipient was Illinois’ highest tax credit target group with 84.49% of certifications for that category. See historical data on Illinois 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.