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

The Work Opportunity Tax Credit, known as #WOTC, is a federal tax credit available to employers who hire individuals from disadvantaged groups of workers. Including WOTC Screening can save an employer significant amounts of money.

WOTC Screening is used to determine if a new hire is a member of one of the Work Opportunity Tax Credit’s ten target groups that would make the employer eligible to receive a tax credit for hiring the individual.

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #9 is the Long-Term Family Assistance Recipient.

80,428 individuals were hired with certification from this group in 2022, 3.1% 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.


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