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.