CMS Work Opportunity Tax Credit Newsletter March 2026

CMS Work Opportunity Tax Credit Newsletter March 2026

In this issue:

• Reminder to Customers
• WOTC Wednesday: How are Work Opportunity Tax Credits (WOTC) Calculated?
• Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance Recipient
• How to Check if You are in an Empowerment Zone, Enterprise Zone, or Rural Renewal County
• #ICYMI

 

Reminder to Customers 

DON’T MISS OUT ON TAX CREDITS! We would like to remind customers to make sure you continue to screen new hires within the 28 day time frame.

• Screen Every New Hire: Don’t miss out on potential tax credits—screen everyone!
• Check Your Links: Make sure your WOTC onboarding links are active. Let us know if you need updates.
• 28-Day Deadline: WOTC forms must be submitted within 28 days of the new hire’s start date to remain eligible.

 

WOTC Wednesday: How are Work Opportunity Tax Credits (WOTC) Calculated?

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday.

Other Recent #WOTCWednesday Questions Answered:

• Is it Better to Use Paper or Go Online with the WOTC Forms?
• What is the minimum wage for WOTC Tax Credit?
• Are my rehires eligible for the Work Opportunity Tax Credit?

Submit your question for Brian here.

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Long-Term Family Assistance Recipient

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #10 is the Long-Term Family Assistance Recipient. 70,810 individuals were hired with certification from this group in 2024, 4.5% of the total.

Long-Term Family Assistance Recipient

A “long-term family assistance recipient” is an individual who, at the time of hiring, is a member of a family that meet one of the following conditions:

• Received assistance under an IV-A program for a minimum of the prior 18 consecutive months
• Received assistance under an IV-A program for a minimum 18-month period beginning after 8/5/1997 and it has not been more than 2 years since the end of the earliest of such 18-month period OR
• Ceased to be eligible for assistance under an IV-A program because a federal or state law limited the maximum time those payments could be made, and it has been not more than 2 years since the cessation of such assistance

The maximum tax credit available for hiring a Long-Term Family Assistance Recipient is $9,000 which is taken over two years.

 

How to Check if You are in an Empowerment Zone, Enterprise Zone, or Rural Renewal County

If your new employees live in an Empowerment Zone, Enterprise Zone, or Rural Renewal Community (RRC) you may be eligible for a WOTC Tax Credit. Click on the map to zoom in and find out if your location qualifies.

 

#ICYMI