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WOTC Tax Credit Estimator

The Work Opportunity Tax Credit (WOTC) gives employers $2,400 – $9,600 per qualifying hire. People in recovery from substance use disorders are a qualifying target group. Use this calculator to see what your hires are worth.

Your Numbers

Planned second-chance hires this year

Target group mix (affects credit amount)

Recovery / Substance use disorders $4,000–$9,600 Ex-felon (within 1 yr of conviction/release) $2,400 SNAP recipient (18–39) $2,400 Qualified veteran $4,800–$9,600 SSI recipient $2,400

Average hours worked per hire (first year) Credit scales up at 400 hrs (50%) and 1,000 hrs (full amount)

Estimated Annual Savings

$24,000 – $96,000 per year

These are estimates based on published IRS WOTC rates. Actual credits depend on wages paid, certification approvals, and individual state rules. Consult your tax advisor.

Ready to hire? Post your openings and let SecondRound send you pre-qualified, second-chance candidates.

Post a Role — Free

How WOTC Works

Hire a qualifying candidate

People in recovery, returning citizens, veterans, and SNAP recipients all qualify. SecondRound flags these candidates automatically.

File Form 8850 within 28 days

Submit the pre-screening form to your State Workforce Agency within 28 days of the hire date. Your accountant can handle this.

Claim the credit on your taxes

After the employee works 400+ hours, claim the credit against federal income tax liability. No cap on the number of hires.

Repeat every hire

There's no annual limit on qualifying hires. The more second-chance employees you bring on, the more credits you earn.