MARCH 2020 – The latest statistics for the Work Opportunity Tax Credit from 2020 have just been released, and the data shows 1,620,806 total Work Opportunity Tax Credits were issued in the United States in 2020. This represents an almost 22% drop over previous years 2019 (2,066,616 credits), and 2018 (2,204,142 credits), and shows the dramatic impact of COVID-19 on the U.S. economy.
SNAP Recipients (food stamps) continues to be the highest WOTC qualifying target group with 68.28%, the next highest categories were TANF (long and short term) at 7.5%, and the combined Qualified Veteran target groups categories adding up to 6.58%.
Although the actual value of the issued tax credits would actually vary based on hours worked, and category the employee came in under, we are using the average tax credit value of $2,400. This would give us a potential total value of 2020’s tax credits at an impressive $3.8 Billion.
The Work Opportunity Tax Credit, known as WOTC, is a federal tax credit available to employers who hire individuals from target groups, that include qualified Veterans, individuals on food stamps and more. WOTC was renewed for five years in 2020, and is active through 12/31/2025.
Read More: WOTC Statistics for 2020
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