Recently, the IRS released updated information on the Work Opportunity Tax Credit. This federal tax credit is equal to 40% of up to $6,000 in wages paid, or a maximum of $2,400 to targeted groups of individuals who have faced significant barriers to employment. The Tax Credit includes ten categories of workers to hire:

  1. Qualified Needy Families
  2. Certain Veterans
  3. Ex-felons
  4. Designated Community Residents
  5. Vocational rehabilitation referrals
  6. Summer youth employment
  7. Food stamp recipients
  8. Supplemental Security Income recipients
  9. Long-term family assistance recipients, &
  10. Qualified unemployment recipients

Most employers have had a difficult time hiring employees in this Covid economy. Killingsworth Spencer CPAs can help find tax credits like the Work Opportunity and many others that will help business owners keep more of their net income.