Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit that encourages employers to hire targeted groups of job seekers. WOTC can reduce employer federal tax liability by as much as $2,400 to $9, 600 per new hire. 

The targeted groups are Category A: Welfare Recipients, Category B-1: Veterans Receiving Food Stamps, Category B-2: Disabled Veterans, Category C: Ex-Felons, Category D: Designated Community Residents, Category E: Vocational Rehabilitation Recipients, Category G: Food Stamp Recipients, Category H: Supplemental Security Income Recipients, Category I: Long Term TANF Recipients, Category V: Unemployed Veterans. Each target group has its own specific requirements.

For more details view the ETA WOTC Handbook No. 408 Third Edition (page II-1 Target Groups At-A-Glance). 

Get Started

You must apply for and receive certification from the Colorado Department of Labor and Employment WOTC Unit, verifying that any new hire is a member of a WOTC target group before you can claim WOTC on the federal tax return. This must be done within 28 days of the new hire’s start date. 

Watch A Webinar To Learn About The Application Process

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Or complete the IRS Form 8850 and ETA Form 9061 located in the resources section below.


Contact Us

Shirley Dixon
WOTC Coordinator
Fax 303-318-8934

Ashley Watikai
Fax 303-318-8934

Celia Hardin
Business Solutions Manager

Colorado Department of Labor & Employment, WOTC Unit
633 17th Street, Suite 700, Denver, CO 80202-3927

Tax related questions should be directed to IRS information number 1-800-829-1040.

Information on Colorado Works Program Credit; this program is not related to WOTC, it is administered by the Colorado Department of Revenue, contact Richard Giardini or 303-856-3900.