Two new targeted groups have been added to the work opportunity credit.
- Unemployed veterans.
- Disconnected youth.
Generally, an unemployed veteran is one who has been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date and who receives unemployment compensation for not less than 4 weeks during the 1-year period ending on the hiring date.
A disconnected youth is one who is certified as:
- Being at least age 16 but not age 25 or older on the hiring date;
- Not attending any high school, technical school, or post-secondary school during the 6-month period ending on the hiring date;
- Not being regularly employed during that 6-month period; and
- Not being readily employable due to a lack of having a sufficient number of basic skills.
This applies to employees who begin work after 2008 and before 2011.
Use the Form 5884, Work Opportunity Credit, to claim the credit.