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FAQs for Indian Tribal Governments regarding the Welfare-to-Work Credit

These frequently asked questions and answers are provided for general information only and should not be cited as any type of legal authority. They are designed to provide the user with information required to respond to general inquiries. Due to the uniqueness and complexities of Indian law and Federal tax law, it is imperative to ensure a full understanding of the specific question presented, and to perform the requisite research to ensure a correct response is provided.



  1. What is the intent of the Welfare-to-Work Credit (Section 51A)?
  2. Who can claim the Welfare-to-Work Credit?
  3. Does the business have to be in an empowerment zone or enterprise community to qualify for this credit?
  4. What is a long-term family assistance recipient?
  5. How do you determine if an employee meets the long-term family assistance recipient requirements?
  6. How is the long-term family assistance recipient certification obtained?
  7. What are "qualified wages"?
  8. What are qualified first-year wages?
  9. What are second-year wages?
  10. What are nonqualified wages?
  11. How is the amount of Welfare-to-Work Credit determined?
  12. What form is used to claim the Welfare-to-Work Credit?
  13. What effect does the Welfare-to-Work Credit have on the salary and wage deduction? 
  14. What effect does the Welfare-to-Work Credit have on the Work Opportunity Credit? 
  15. What effect does the Welfare-to-Work Credit have on the Empowerment Zone Employment Credit? 


For questions regarding tax return account matters, tax deposits or filing requirements, please contact our Customer Account Services staff toll-free at
1-877-829-5500.

For questions on any tribal tax matter, please e-mail us.  Be sure to include your name, your phone number and your email address so that we can respond to your question.
Page Last Reviewed or Updated: 11-Dec-2013