Glossary: Work Opportunity Tax Credit

#ABCDEFGHIJKLMNOPQRSTUVWXYZ
TTo top

One of the following nine groups eligible for either the Work Opportunity Tax Credit (WOTC) or the Welfare-to-Work Tax Credit:

  • CalWORKs recipients
  • Veterans receiving CalFresh
  • Ex-felons
  • Youth at risk
  • Vocational Rehabilitation and Employment Network referrals
  • Summer youth employees
  • Youth (18-24 years old) receiving CalFresh (formerly Food Stamps), and
  • SSI recipients.

A dollar for dollar reduction in taxes owed. If the tax credit is greater than the amount of taxes you owe, the remaining credit will be sent to you by check or direct deposit.

WTo top

An employer tax credit that targets individuals who are long-term CalWORKs recipients.

A federal program that encourages employers to hire job seekers from one of nine targeted groups by offering employers a federal tax credit. The purpose of the WOTC is to help job seekers in the targeted groups overcome barriers to employment.