Form 5884: Work Opportunity Credit

Employers can use Form 5884 to claim the Work Opportunity Tax Credit (WOTC). The WOTC is available to employers who hire people from groups that have faced barriers to employment.

To be eligible for the WOTC, employers should pre-screen job applicants. A designated state workforce agency must certify that an employee is a member of a targeted group. The targeted groups are:

  • Long-term family assistance recipients

  • Recipients of Temporary Assistance for Needy Families

  • Veterans

  • Ex-felons

  • Designated community residents

  • Vocational rehabilitation referrals

  • Summer youth employees

  • Food stamp recipients

  • SSI recipients

  • Long-term unemployment recipients

You can claim the credit for first- and/or second-year wages. Qualified wages have the same definition as under the Federal Unemployment Tax Act.

Form 5884 is a requirement for:

  • Partnerships

  • S corporations

  • Cooperatives

  • Estates

  • Trusts

Other taxpayers can claim the credit directly on Form 3800 if their only source for the credit is one of these types of organizations.

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