In December, Congress once again extended the Work Opportunity Tax Credit (WOTC) through the end of this year. Along with the extension, Congress combined WOTC and the Welfare to Work Tax Credit, with this combination becoming effective January 1, 2007. The WOTC extension was for two years, with first year being retroactive to January 1, 2006 (the authority on this tax credit expired December 31, 2005.) Employers who hired eligible individuals during 2006 will now be able to claim the WOTC credit. And, employers can be guaranteed the credit for hires throughout 2007.
Other key modifications of the combined credit include expanded eligibility for WOTC (raised age ceiling for food stamp recipients from 25 to 40), revised eligibility requirements for ex-felons (without regard to family income) and a modification of the filing deadline for WOTC claimants from 21 to 28 days.
For more information on WOTC click here
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