To start, we are not tax advisers and legally cannot tell you how to apply your WOTC credits or file your taxes. We advise all of our clients to speak with their accountants on how to maximize their credits when filing.
However, in the past, we have had clients that use their credit in one of the two following ways:
- They take the credit in the year that their employee earned their wages. If the tax return is not still open, this may result in an amended filing.
- They take the credit in the year that the credit is certified
- According to this view, the employer should not be penalized because of the slowness of some state agencies to render WOTC certifications by having to file an amended return at their own expense. Intuitively, it is more reasonable to allow employers to take the certified WOTC credit for the year in which the certification was issued.
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