Form 8850 is the IRS pre-screening notice an employer uses to start the certification process for the Work Opportunity Tax Credit (WOTC). It is signed by both the job applicant and the employer on or before the day a job offer is made, and it must reach the State Workforce Agency (SWA) within 28 days of the employee’s first day of work. The form itself does not claim the credit. It asks the SWA to confirm that the new hire belongs to one of ten target groups so the employer can later claim the WOTC on their federal tax return.
Who Fills Out Each Section, and When
Form 8850 has two parts. The applicant completes Section A, the employer completes Section B, and timing is strict on both sides.
Section A: The Job Applicant
The applicant provides their name, Social Security number, and address, then answers a series of yes-or-no questions covering veteran status, SNAP or TANF benefits, felony history, SSI, unemployment duration, and other target-group indicators. They sign under penalty of perjury. This part must be completed on or before the day the job offer is made, not after the person starts work.
Filling out Form 8850 is voluntary for the applicant. A candidate can decline, and that refusal cannot legally affect the hiring decision. If they decline, the employer simply cannot pursue the WOTC for that hire.
Section B: The Employer
The employer records the business name, address, and Employer Identification Number, along with the job offer date, hire date, and start date. Based on the applicant’s answers, the employer marks which target group the applicant appears to fall into, then signs under penalty of perjury. Section B is also completed by the job offer date.
The 28-Day Deadline and Where to Send It
The employer must submit Form 8850 to the SWA within 28 calendar days of the employee’s first day of work. The clock starts on the date the employee first performs services for pay. Miss the deadline and the WOTC is off the table for that hire, regardless of how clearly the person qualifies.
Form 8850 goes to the SWA in the state where the employee works. It does not go to the IRS, and the IRS instructions state this explicitly. Every state has a designated WOTC coordinator who processes certification requests.
Federal guidance requires each SWA to offer at least two submission methods. Most states now run an online WOTC portal, and mail or fax is usually available as an alternative. Electronic signatures are permitted under IRS Notice 2012-13 as long as the system verifies the signer’s identity and preserves the perjury statement.
The deadline can be extended in narrow situations. The IRS has postponed the 28-day window for taxpayers affected by federally declared disasters, and when the WOTC has lapsed and been renewed retroactively, the IRS has typically granted additional filing time for workers hired during the gap period.
The Companion Form You Must File With It
Form 8850 by itself is not enough. The employer also submits one of two Department of Labor forms to the SWA:
- ETA Form 9061, the Individual Characteristics Form, collects the background details the SWA uses to verify target group membership. This is the more common path.
- ETA Form 9062, the Conditional Certification, is used when a participating agency such as a vocational rehabilitation office or a TANF agency has already pre-certified the applicant.
The companion form travels with Form 8850 inside the same 28-day window.
Who Qualifies: The Ten Target Groups
An applicant only produces a credit if the SWA certifies them as a member of one of the ten groups defined in 26 U.S.C. § 51(d):
- Qualified IV-A (TANF) recipients whose family received TANF for at least 9 months during the 18-month period ending on the hiring date.
- Qualified veterans, including those who received SNAP for at least 3 months in the prior 15 months, were unemployed at least 4 weeks in the prior year, or have a service-connected disability.
- Qualified ex-felons hired within one year of conviction or release, whichever is later.
- Designated community residents aged 18 to 39 who live in an Empowerment Zone.
- Vocational rehabilitation referrals from a state agency, the Department of Veterans Affairs, or an Employment Network under Ticket to Work.
- Qualified summer youth employees aged 16 or 17 living in an Empowerment Zone, working between May 1 and September 15.
- Qualified SNAP recipients aged 18 to 39 whose family met specific SNAP receipt requirements before hiring.
- Qualified SSI recipients who received SSI for any month ending within 60 days of the hiring date.
- Long-term family assistance recipients whose family received TANF for at least 18 consecutive months, or whose benefits ended within the past 2 years because of a time limit.
- Qualified long-term unemployment recipients unemployed for at least 27 consecutive weeks who received unemployment compensation during part of that period.
The SWA, not the employer, makes the final call on eligibility.
Documentation the SWA May Request
The SWA may ask for records that back up the target group claimed on Form 8850. What is needed depends on the group:
- Veterans: DD-214 discharge papers, VA letters confirming a service-connected disability, or unemployment insurance records.
- TANF and SNAP recipients: benefit history printouts, case numbers, or signed statements from authorized agency personnel.
- Ex-felons: court records, correction institution records, or a parole officer’s statement.
- SSI recipients: benefit evidence or authorization records from the Social Security Administration.
- Vocational rehabilitation referrals: contact information for the referring agency, or a VA separation letter for disabled veterans.
- Community residents and summer youth: proof of age and proof of Empowerment Zone residency.
- Long-term unemployment recipients: unemployment insurance claims records or the self-attestation ETA Form 9175.
Employers do not have to gather every document before submitting Form 8850. The SWA may already have access to some records through interagency data sharing, though ready documentation speeds certification.
After Certification: Claiming the Credit
Once the SWA sends back a certification letter, the employer calculates the credit on Form 5884, Work Opportunity Credit, using the certified employee’s qualifying wages and hours. That amount flows onto Form 3800, General Business Credit, which is filed with the employer’s federal income tax return.
The credit size depends on hours worked and target group. An employee working under 120 hours produces no credit. From 120 to 399 hours, the credit is 25% of first-year qualifying wages; at 400 hours or more, it is 40%. The wage cap is $6,000 for most groups (maximum credit $2,400), higher for certain veterans (up to $9,600), and structured across two years for long-term family assistance recipients (up to $9,000 combined).
Tax-exempt organizations follow a different path. They can only claim the WOTC for qualified veterans, and they file Form 5884-C to claim it against their share of payroll taxes rather than income tax.
Recordkeeping and Perjury Exposure
Keep copies of every Form 8850 submitted, any transmittal letters sent to the SWA, and the certification letters received back. IRS retention is at least 3 years from the date the return claiming the credit is due or filed, whichever is later; four years from the filing date leaves a comfortable margin.
Because both signatures on Form 8850 are made under penalty of perjury, false statements carry the same consequences as lying on a tax return. Misuse, such as fabricating applicant information or submitting forms for employees who were never actually screened, can be reported to the Treasury Inspector General for Tax Administration.
Current Status of the WOTC
The WOTC applies to wages paid to qualifying individuals who begin work on or before December 31, 2025. As of early 2026, the statutory authority has expired and Congress has not enacted an extension, though bipartisan renewal legislation was introduced in late 2025. Employers who hired qualifying workers before the end of 2025 can still complete certification and claim the credit for those hires. New hires starting after December 31, 2025 do not currently qualify.
Congress has retroactively extended the WOTC multiple times in the past. If it does so again, the IRS typically grants additional time to submit Form 8850 for workers hired during the gap. Employers hiring from the target groups should keep collecting signed Form 8850s from applicants on or before the offer date so they can act quickly if the credit is renewed.