WOTC Questions: When referring to target groups, how does a Long-Term Family Assistance recipient differ from a TANF recipient?

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:

When referring to target groups, how does a Long-Term Family Assistance recipient differ from a TANF recipient?

CMS Says: Hi, when it comes to the value of the Work Opportunity Tax Credit there is a difference between these two target groups.

Temporary Assistance to Needy Families (TANF) Recipients the tax credit is 40 percent of qualified first year wages up to $6,000 if the individual is retained for at least 400 hours. If the individual is retained less than 400 hours but at least 120 hours a 25 percent tax credit is available on qualified first year wages up to $6,000.

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.

There were 3,104,094 individual TANF Recipents in 2018 (1.2 million families). (FAS Reference-PDF)

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