Veteran Tax Credit Calculator
Hiring a veteran can be worth up to $9,600 in federal tax credit under the Work Opportunity Tax Credit. Three quick fields tell you what a hire is worth — and what to file so you actually get it.
Program status: in hiatus — keep filing anyway
WOTC’s authorization ran out on December 31, 2025 and Congress has not yet renewed it. State agencies are still accepting and logging applications; they just cannot issue certifications until it is reauthorized.
This has happened before — and when the credit came back, it came back retroactively, with IRS transition relief that extended the 28-day filing deadline for hires made during the lapse. But that relief is discretionary, granted after the fact, and never guaranteed. Filing on time is the only position that wins in every scenario; the numbers below are what each hire is worth if history repeats.
Get this as a one-page filing checklist
We’ll email you the estimate with the exact forms, the 28-day deadline math, and where to file in your state. One email, no sequence.
The credit is won or lost in the first 28 days
The math above is the easy half. WOTC is claimed on your tax return, but only for hires you screened and filed on time — there is no filing it later.
- Screen before or on the job-offer day. The veteran fills out the one-page IRS Form 8850 (pre-screening notice) no later than the day of the offer.
- File within 28 days of their start date. Form 8850 plus ETA Form 9061 go to your state workforce agency — in Minnesota, that is DEED. Miss the window and that hire can never qualify.
- Keep the certification with your tax records. When the state certifies (or, during the hiatus, once determinations resume), your tax preparer claims the credit on IRS Form 5884 with your business return.
Straight answers
Is this credit per veteran, or once per company?
Per qualifying hire. Three qualifying veteran hires at the full disabled-veteran rate is up to $28,800 against your federal tax bill. There is no company-level cap.
Does the veteran have to do anything?
Only answer the questions on Form 8850, which takes a few minutes. The employer files everything. Nothing about the credit affects the veteran’s pay, benefits, or taxes.
We use a PEO or payroll provider. Who files?
Usually they will, but only if you tell them to — most providers have a WOTC screening add-on that is off by default. Ask specifically whether Form 8850 is being filed for new hires, and who holds the certifications.
What counts as “disabled veteran” here?
A veteran entitled to compensation for a service-connected disability — any rating. The employer never sees or asks for the rating; the state verifies eligibility from the forms.
Is asking about veteran status in hiring even legal?
Yes — Form 8850 is an IRS pre-screening form completed by the applicant, and inviting veterans to self-identify is exactly what VEVRAA-covered contractors are already required to do. The form is used after the hiring decision process for the credit, not to filter candidates.
Where does LockLeed come in?
Every placement we make arrives with the paperwork awareness above — and because our candidates are veterans, a large share of them qualify. If you want the screening handled as part of hiring, tell us about the role.
Hire the veteran first
The credit is a bonus. The hire is the point — vetted, mission-ready, and typically a first slate within 5–10 business days.