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IRS Reminds Employers of Expanded and Modified Work Opportunity Tax Credit (WOTC

The WOTC allows employers that hire members of targeted groups who face employment barriers to claim a credit against income tax of a percentage of first-year wages. In a recent News Release, the IRS reminds employers there are now ten categories of eligible workers: qualified IV-A Temporary Assistance for Needy Families recipients; unemployed veterans, including disabled veterans; ex-felons; designated community residents living in Empowerment Zones or Rural Renewal Counties; vocational rehabilitation referrals; summer youth employees living in Empowerment Zones; food stamp (SNAP) recipients; Supplemental Security Income recipients; long-term family assistance recipients; and qualified long-term unemployment recipients. Before claiming the credit, employers must first request certification on Form 8850 within 28 days after the eligible worker begins. Though generally ineligible for the credit, tax-exempt organizations can claim the WOTC for hiring qualified veterans. For more information, go to www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit