Form De 8721 - Work Opportunity Tax Credit (Wotc) - Information Sheet (Page 3 of 4) in pdf

Form De 8721 - Work Opportunity Tax Credit (Wotc) - Information Sheet Page 3

Group H – Qualiﬁ ed Supplemental Security Income Recipient

Any individual who:

• Is receiving Supplemental Security Income (SSI) payments under Title XVI of the Social Security

Act for any month ending within the 60-day period ending on the hiring date. Note: Those

receiving Social Security Disability Income (SSDI) are not the same as SSI recipients.

Group I – Qualiﬁ ed Long-Term Family Assistance Recipient

Any individual who:

• Has received Temporary Assistance to Needy Families (TANF), or a successor program, for at least

18 consecutive months ending on the hiring date, or

• Has received TANF for a total of at least 18 months, whether or not the months are consecutive,

beginning after August 5, 1997, and whose hiring date is not more than two years after the end of

the earliest 18-month period, or

• Whose TANF eligibility expired, and has a hiring date within two years of the TANF eligibility

expiration date, but after August 5, 1997.

Tax Credit Amounts

For Target Group(s):

• A, Ba, Bd, C, D, E, G, H, the maximum tax credit amount is a 40 percent tax credit on qualiﬁ ed

ﬁ rst year wages up to $6,000, or $2,400 for a one-year period.

• Bb, Disabled Veteran (hired within one year of separation), the maximum tax credit amount is a

40 percent tax credit on qualiﬁ ed ﬁ rst year wages up to $12,000 or $4,800 for a one-year period.

• Bc, Disabled Veteran, unemployed 6 months or more, the maximum tax credit amount is a

40 percent tax credit on qualiﬁ ed ﬁ rst year wages up to $24,000 or $9,600 for a one-year period.

• Be, Unemployed Veteran, unemployed 6 months or more, the maximum tax credit amount is a

40 percent tax credit on qualiﬁ ed ﬁ rst year wages up to $14,000 or $5,600 for a one-year period.

Retention

In order to claim the tax credit, the employee must be retained 400 hours or more for a 40 percent tax

credit on qualiﬁ ed ﬁ rst year wages. For the employee that is retained at least 120 hours but less than

400 hours, a 25 percent credit is available on qualiﬁ ed ﬁ rst year wages.

DE 8721 Rev. 13 (5-13) (INTERNET)

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Form De 8721 - Work Opportunity Tax Credit (Wotc) - Information Sheet Page 3