The Work Opportunity Tax Credit (WOTC) is a federal credit that rewards employers for hiring people from groups that face barriers to employment. Several veteran categories are among the most valuable.
Not tax advice. 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.
Military spouses and WOTC
As of September 2026, military spouses are not a WOTC target group, so being a military spouse does not by itself qualify a hire. A spouse who separately meets the rules for another group, such as the SNAP recipient or long-term unemployment recipient groups, is screened under that group like anyone else. And WOTC itself lapsed for employees who begin work after December 31, 2025, so no 2026 hire earns the credit unless Congress reauthorizes it.
Several bills would add military spouses as a new target group, among them the Military Spouse Hiring Act (S.1027 and H.R.2033, introduced in March 2025) and the Improve and Enhance the Work Opportunity Tax Credit Act (S.3265 and H.R.6231, introduced November 20, 2025), which would also extend WOTC through December 31, 2030. As of September 2026, all of them are still in committee, and none has become law. As introduced, they would cover only spouses who begin work after the bill is enacted, so a spouse hired now would not count under the new group even if one passes. For the spouse hiring programs that exist today, see our military spouse employment guide.
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. Check the hiring date against the separation date first: the WOTC definition of a veteran excludes anyone with a day of extended active duty (a period of more than 90 days on active duty) in the 60 days ending on the hiring date, so a hire made during terminal leave does not count. See hiring someone on terminal leave.
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.
WOTC is not the only program that can attach to a veteran hire. If the role needs six months or more of structured training, the veteran may be able to draw GI Bill on-the-job training benefits while working for you, and Minnesota employers with an approved program can also qualify for two state-paid GI Bill job placement credits. See GI Bill on-the-job training for Minnesota employers for how approval works and how the programs stack.
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.