The Work Opportunity Tax Credit (WOTC) is a federal credit that rewards employers for hiring people from groups that face barriers to employment — and several veteran categories are among the most valuable.
Not tax advice — and check current status. WOTC's authorization lapsed for employees who begin work after December 31, 2025, so it is not available for 2026 hires unless Congress reauthorizes it (many employers still screen and file on time to preserve eligibility). Figures, eligibility, and deadlines change; confirm current status with the IRS, the U.S. Department of Labor, or your tax professional before you rely on them.
What WOTC is worth for veterans
The credit is a percentage of qualified first-year wages, and the maximum depends on the veteran's category and hours worked. In broad terms:
- Veteran receiving SNAP (food) benefits — up to about $2,400.
- Veteran unemployed at least 4 weeks (but under 6 months) — up to about $2,400.
- Veteran unemployed at least 6 months — up to about $5,600.
- Disabled veteran hired within one year of discharge — up to about $4,800.
- Disabled veteran unemployed at least 6 months — up to about $9,600.
How to claim it
The mechanics are straightforward once they are part of onboarding. Have the new hire and your company complete IRS Form 8850 (the pre-screening notice) and submit it to your State Workforce Agency within 28 days of the start date. Once certified, calculate and claim the credit on IRS Form 5884, which flows into the general business credit (Form 3800). Many states now accept the 8850 electronically.
Make it routine
The biggest reason employers miss WOTC is timing — the 28-day window closes fast. Build the screening form into your standard onboarding packet so every eligible hire is captured automatically.
How LockLeed helps
We place qualified, mission-ready veterans and can flag candidates who may fall into a WOTC target group, so your finance or tax team can pursue the credit. Combined with the productivity and retention veterans bring, the credit makes the math on veteran hiring even stronger.