FAQs for Indian Tribal Governments regarding the Work Opportunity 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 effect does the Work Opportunity Credit have on the Indian Employment Credit?
  2. What is the intent of the Work Opportunity Credit (Section 51)?
  3. Who can claim the credit?
  4. Does the business have to be in an empowerment zone or enterprise community to qualify for this credit?
  5. What is a "targeted group employee"?
  6. How do you determine if an employee meets the targeted group employee requirements?
  7. How is the targeted group employee certification obtained?
  8. What are "qualified first-year wages"?
  9. What are nonqualified wages?
  10. How is the amount of Work Opportunity Credit determined?
  11. What form is used to claim the Work Opportunity Credit? (Updated May 8, 2020)
  12. What effect does the Work Opportunity Credit have on the salary and wage deduction?
  13. What effect does the Work Opportunity Credit have on the Empowerment Zone Employment Credit?  

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