Claiming the WOTC Tax Credit – Important Information

Here are some questions we get from our clients or their CPA’s:

For which tax years can the WOTC credit be applied?
Employers may claim the Work Opportunity Tax Credit for a total of two years. Employers who do not take the full credit amount because of the tax liability limitation may carry back one year or forward 20 years. Employers claim the tax credit for the year they “realize” the credit i.e. employee hired in 2012, received voucher in 2014, tracked hours and wages for eligibility for full credit in 2014.

Can I go back and amend our returns?
Yes, the IRS will allow a return amending a timely-filed return.  Amended returns generally must be filed by the later of 3 years after the filing date of the original return or 2 years after the tax is paid.
Example – The date is 5/27/2013 & we are working on 2012. But was able to go back and acquire a significant amount ($100,000.00) of WOTC credits accumulated in 2009 for use on our 2010 return (i.e. Refund).

Can I carry forward tax credits not used?
Yes, WOTC tax credits rules are the same as general business credits. You can carry forward unused tax credits for up to twenty (20) years & back one (1) year.

WOTC Filing Help is Available:  If you are a business owner, or a CPA, you can contact the WOTC Specialists at for additional information.

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