Are you looking for a way to save money on your taxes? Work opportunity tax credits may be the answer. These credits are available to individuals who are looking for a way to get back into the workforce after being out of the workforce for a period of time, or who are new to the workforce. Here are some key things you need to know about work opportunity tax credits.
1. What are the work opportunity tax credits?
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The work opportunity tax credit is a government-provided financial incentive that helps people who are looking for a way to get back into the workforce after being out of the workforce for a period of time, or who are new to the workforce. The Work Opportunity Tax Credit provides up to $6,000 per individual in 2017, and it can be claimed as part of your federal taxes.
2. How do you qualify for work opportunity tax credits?
You may qualify for work opportunity tax credits if you have been unemployed for at least six months, or if you have been out of the workforce for at least a year. You also may qualify if you are ready and willing to start working, but you cannot find a job that meets your qualifications.
3. How do I claim work opportunity tax credits?
You can claim work opportunity credit by filing Form 941 with your federal taxes. You should also attach a copy of your resume and any other documentation you feel is necessary to support your claim.
4. Is there a deadline for claiming work opportunity tax credits?
There is no deadline for filing work opportunity credit claims, but you should submit your paperwork as soon as possible so that the IRS can fully process your claim.
5. How can I find out if I qualify for work opportunity tax credits?
If you would like to learn more about whether you may qualify for work opportunity credit, you can contact the IRS or a qualified professional accountant.
6. Do work opportunity tax credits expire?
Work opportunity credit claims generally expire four years after the close of the calendar year in which you filed your claim. However, if you have successfully secured a job that meets all of your qualifications, work opportunity credit claims may be extended for an additional two years.
7. What are the penalties for claiming work opportunity tax credits that are not accurate or timely?
If you knowingly and fraudulently claim work opportunity credit, you may be subject to a fine of up to $100,000 and imprisonment for up to five years. Additionally, your refund may be reduced or you may have to pay interest on the taxes that you overpaid.
8. Can I use work opportunity tax credits to offset other personal federal income taxes?
No, work opportunity credit cannot be used to offset any other personal federal income taxes.
9. What are the requirements for claiming work opportunity tax credits?
There are many requirements that must be met in order to qualify for work opportunity credit. These include having worked at a job during at least half of the qualifying period and being qualified based on your occupation or employment type.
10. Can I use my work opportunity tax credits against any other federal taxes?
No, you cannot use your work opportunity credit against any other federal taxes, including income taxes, social security and Medicare payroll taxes.
Conclusion:
There are a lot of things you need to know about work opportunity tax credits before filing your taxes. By understanding the requirements and potential penalties, you can be sure that your claim is accurate and meets all of the qualifications necessary.
