About The Tax Credit:
Created through the Small Business Job Protection Act of 1996, the Work Opportunity Tax Credit (WOTC) provides employers an incentive to hire certain target group members with barriers to employment. The Small Business and Work Opportunity Act of 2007 (P.L. 110-28) extends the WOTC through August 31, 2011.

How Does the WOTC Credit Work?
Employing qualified target group members can reduce an employer's federal income tax liability. At the end of the tax year, the employer claims a credit of up to $2,400 for most WOTC certified new hires. This is based on 40 percent of up to $6,000 of qualified first-year wages paid to those employed 400 hours or more. For certified employees that worked at least 120 hours but less than 400 hours, the tax credit is 25 percent of wages paid up to a maximum of $6,000.

A maximum of $4,800 in tax credit may be claimed on each WOTC certified disabled veteran, which is based on 40 percent of up to $12,000 of qualified first-year wages paid on those employed 400 hours or more.

An employer may claim up to $9,000 in tax credit for every WOTC certified long-term family assistance recipient. This is based on 40 percent of up to $10,000 of qualified wages paid during the first year and 50 percent of up to $10,000 paid in the second year for qualified long-term family assistance recipients employed 400 hours or more in each year.

Note : One of the main criteria for being eligible is that many of these new employees do not necessarily have to be on welfare, receive food stamps, or other assistance themselves but may be eligible if someone in household is on an assistance program.
Please try the tax credit calculator to see what you could be earning in credits.

There may be other credit you are entitled to also.