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Work Opportunity Tax Credit (WOTC)

Federal credit for hiring veterans, ex-felons, long-term unemployed.

Overview

Up to $9,600 per qualifying hire (veterans) or $2,400 (most categories) as a federal credit against tax. File Form 8850 within 28 days of hire. Stacks with state hiring credits. Massive for high-turnover businesses (restaurants, staffing, logistics, contractors).

Best fit
High-turnover employersRestaurants/staffingVeteran-friendly businesses
Estimated impact
$2,400–$9,600 per qualifying hire

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