Work Opportunity Tax Credit

Moving customers from welfare to work to gain on-the-job experience is the focus of the Work Opportunity Tax Credit (W.O.T.C.) And the Welfare to Work (WtW) federal tax credit programs. W.O.T.C. encourages employers to hire job seekers from nine targeted groups. W.O.T.C. and WtW are administered by the Ohio Department of Job and Family Services under the guidance of the Department of Labor and Internal Revenue Service. Employers who are interested in participating in W.O.T.C. must apply for and receive certification from the Ohio Department of Job and Family Services before they can claim these tax credits on their federal tax returns. The ETA 9061 form along with the IRS form 8850 need to be submitted when requesting certification to the Ohio Department of Job and Family services, Bureau of Tax Credit Services W.O.T.C./WtW Unit, 145 S. Front St., 2nd Floor, Columbus, Ohio 43215-4156. If approved, these tax credits reduce the employers’ federal income tax liability.

WtW Tax Credit is a federal income tax credit that encourages employers to hire long term public assistance recipients. These recipients have received Temporary Assistance to Needy Families (T.A.N.F.) for at least 18 consecutive months before their hire date or the individuals T.A.N.F. eligibility has expired. For individuals hired within two years after their eligibility has expired an 8850 and ETA 9061 application can be downloaded. Another possibility involves an individual who was hired within two years after the end of the 18 month period.

The concentration of the WtW Tax Credit concerns helping persons who face multiple challenges to employment such as learning disabilities, low basic skills, substance abuse, and mental and physical disabilities.