WOTC Questions: Does the WOTC apply only the qualified employee’s first year of employment or every year they work?

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:

Does the WOTC apply only the qualified employee’s first year of employment or every year they work?

CMS Says: Hello, the Work Opportunity Tax Credit only applies to the first year worked for the majority of target groups. There is only one group that you can take the tax credit over two years:

The tax credit for target group Long-term Family Assistance Recipient, is 40 percent of first year qualified wages up to $10,000 and 50 percent of second year qualified wages up to $10,000. The individual must be retained at least 180 days or 400 hours.

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