What Is The Purpose Of This Form?
Form 5884-C is for tax-exempt organizations to claim a work opportunity credit (WOTC), up to $2,400 per employee, against the portion of social security tax on wages paid to all employees during the period that starts when a qualified veteran begins work.
Form 8850 must be submitted to the state workforce agency before claiming the WOTC.
Qualifying Veterans
- A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date.
- Unemployed for a period or periods totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
- Unemployed for a period or periods totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
- Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces.
- Entitled to compensation for a service-connected disability and unemployed for a period or periods totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
- Served on active duty (not including training) in the U.S. Armed Forces for more than 6 months or have been discharged or released from active duty for a service-connected disability, and
- Not been in active duty (not including training) within 90 days of the hiring date
What Are Latest Developments That Are Relevant To Me?
Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. If you are a tax-exempt organization that hires an unemployed veteran, you may be able to get a tax credit. The credit can be used to lower your payroll taxes. Fill out Form 5884-C. Learn more.
Wort opportunity tax credit extended. The Consolidated Appropriation Act, 2021 (Section 113 of Division EE P.L. 116-260) authorized the extension of the Work Opportunity Tax Credit (WOTC) until December 31, 2025.
What Does The Form Look Like?
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