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Video instructions and help with filling out and completing When 8850 Form Reduced

Instructions and Help about When 8850 Form Reduced

What is WOTC? It stands for the Work Opportunity Tax Credit. WOTC is money back for employers who hire good people who face a challenge getting a job. You may be able to get a WOTC tax credit if you hire an unemployed veteran or someone who has received food stamps or vocational rehabilitation, or who faces other kinds of challenges getting a job. You can get a tax credit of between twelve hundred and ninety-six hundred dollars for each WOTC eligible hire. Getting the WOTC tax credit means doing some paperwork, but it's really not that complicated. To apply for WOTC, you need to send two forms to the Department of Labor in your state government. It is usually called the State Workforce Agency. If the State Workforce Agency certifies your WOTC application, then you can file with the IRS to claim the tax credit. There are five steps to apply for WOTC, and they will be explained one at a time. Eligible workers for WOTC include veterans, summer youth employees, ex-felons, members of a family that has received temporary assistance or food stamp benefits, certain people with disabilities who receive SSI benefits or vocational rehabilitation, and people who live in certain low-income communities. Details on eligibility requirements can be found at DOL ETA.gov/WOTC. There are some people who don't qualify, such as relatives and dependents of the employer who is hiring or majority owners of the business. Also, the hire must be a new employee, not a current or former employee regardless of how long it's been since the person last worked for you. Step 1 is pre-screening a job candidate and filling out IRS Form 8850. The person you want to hire fills out the first page, and you fill out page two. Form 8850 needs to be completed on or...