WOTC Questions: Can I claim the WOTC for myself if I form my own company?

At CMS, as Work Opportunity Tax Credit (WOTC) experts and service providers since 1997, we receive a lot of questions via our website’s chat box that we try to answer:

Can I claim the WOTC for myself if I form my own company?

CMS Says: Sorry, as an owner of the business you would be ineligible to claim WOTC Tax Credit for hiring yourself. Relevant text from the § 51 of the Internal Revenue Code (Code):

(i) Certain individuals ineligible

(1) Related individuals

No wages shall be taken into account under subsection (a) with respect to an individual who-

(A) bears any of the relationships described in subparagraphs (A) through (G) of section 152(d)(2) to the taxpayer, or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than 50 percent in value of the outstanding stock of the corporation, or, if the taxpayer is an entity other than a corporation, to any individual who owns, directly or indirectly, more than 50 percent of the capital and profits interests in the entity (determined with the application of section 267(c)).

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