Employers Gain Extra Time to Claim the Work Opportunity Tax Credit

The IRS announced an extension that employers now have until April 29, 2013, to claim the Work Opportunity Tax Credit (WOTC), IRS Notice 2013-14.

The WOTC can be claimed by employers hiring individuals of targeted groups, such as certain veterans and SNAP recipients, and receive a credit based on a percentage of wages paid in the first year. Thanks to the American Taxpayer Relief Act (ATRA), enacted on January 2, 2013, the credit has been retroactively extended and applies to qualified veterans and non-veterans who begin working for an eligible employer before January 1, 2014.

The IRS Notice 2013-14 provides relief to the following:

  1. For-profit (taxable) employers that hired a member of a targeted group, other than an eligible veteran, between January 1, 2012 and March 31, 2013.
  2. Employers (tax-exempt or taxable) that hired an eligible veteran between January 1, 2013 and March 31, 2013.

Review the Weaver e-newsletter article Employers: Gain Extra Time to Claim the Work Opportunity Tax Credit to identify eligible target group members, review the general claim process, and learn more about the credit’s stipulations and relief. If you have specific questions about how to claim the WOTC for certain employees, contact your Weaver tax adviser.