CMS Work Opportunity Tax Credit Newsletter October 2024

In this issue:

• Brian Kelly Talks WOTC on the Sage Thought Leadership Podcast
• WOTC Wednesday: What is the Work Opportunity Tax Credit “WOTC”?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Qualified Veterans
• Work Opportunity Tax Credit Statistics Georgia 2023
• Work Opportunity Tax Credit Statistics 2023
• #ICYMI

 

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 it Better to Use Paper or Go Online with the WOTC Forms?
• What is the minimum wage for WOTC Tax Credit?
• Are my rehires eligible for the Work Opportunity Tax Credit?

 

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 Georgia 2023

In 2023 the state of Georgia issued 65,424 Work Opportunity Tax Credit certifications.

Georgia issued 3.30% of all WOTC Tax Credits in 2023, SNAP Recipient was Georgia’s highest tax credit target group with 75% of certifications for that category. See historical data on Georgia 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.