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:
We are a not for profit C corp, does WOTC apply to us?
CMS Says: Hello, if you hire Qualified Veterans, yes. That is the only target group that is available to the non-profit community when it comes to utilizing the Work Opportunity Tax Credit.
A Qualified veteran is any of the following:
- A member of a family that has received Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date.
- Unemployed for a period or periods totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
- Unemployed for a period or periods totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
- Entitled to compensation for a service connected disability and is hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces.
- Entitled to compensation for a service connected disability and was unemployed for a period or periods totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
Tax Credit Values For Hiring Qualified Veterans:
- Receives SNAP (Food Stamps) Benefits
- Worked at least 120 hours but less than 400 hours Up to $1,500 (25% of $6,000 of first-year wages)
- Worked at least 400 hours Up to $2,400 (40% of $6,000 of first-year wages)
Entitled to compensation for service-connected disability:
- Hired 1 year after leaving service
- Worked at least 120 hours but less than 400 hours Up to $3,000 (25% of $12,000 of first-year wages)
- Worked at least 400 hours Up to $4,800 (40% of $12,000 of first-year wages)
- Unemployed at least 6 months
- Worked at least 120 hours but less than 400 hours Up to $6,000 (25% of $24,000 of first-year wages)
- Worked at least 400 hours Up to $9,600 (40% of $24,000 of first-year wages)
Unemployed:
- At least 4 weeks
- Worked at least 120 hours but less than 400 hours Up to $1,500 (25% of $6,000 of first-year wages)
- Worked at least 400 hours Up to $ 2,400 (40% of $6,000 of first-year wages)
- At least 6 months
- Worked at least 120 hours but less than 400 hours Up to $ 3,500 (25% of $14,000 of first-year wages)
- Worked at least 400 hours Up to $5,600 (40% of $14,000 of first-year wages)
About Our WOTC Screening Services
- Why you should use CMS’s WOTC Tax Screening Service rather than doing it yourself.
- Get an idea of how much you could be saving by utilizing the Work Opportunity Tax Credit for your company, try our WOTC Calculator.
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In over 20 years of providing valuable WOTC Screening and Administration services we’ve saved millions for our customers.
Contact CMS today to start taking advantage. Call 800-517-9099, or click here to use our contact form to ask any questions.