Form 8850: How Employers File for WOTC 2026
Form 8850 goes to your state workforce agency — never the IRS — and it's due within 28 calendar days of your new hire's start date. Here's the exact filing process, plus what it means that WOTC has been lapsed for every hire starting on or after January 1, 2026.
Updated July 17, 2026 — every figure verified against irs.gov and dol.gov primary sources
WOTC status as of July 17, 2026: lapsed since Jan 1 — IRS marked Form 8850 "no longer in use" for hires after Dec 31, 2025 (updated Mar 20, 2026); not yet reauthorizedForm 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit) is completed by you and your new hire together, on or before the day you offer the job — in practice, most employers fold it into Day-1 onboarding. You then submit it, plus ETA Form 9061 or 9062, to your State Workforce Agency (SWA) within 28 calendar days of the hire's start date. It never goes to the IRS. Certified hires are worth $2,400 standard, up to $9,600 for a disabled veteran unemployed 6+ months — but WOTC is currently lapsed for any hire starting on or after January 1, 2026, so file protectively (see the dated status section below) and wait on certification until Congress reauthorizes the credit.
Calculate your Form 8850 deadline and check your target group
Two quick tools, both computed client-side from IRS- and DOL-published rules — nothing you enter is sent anywhere.
WOTC Screening Deadline Calculator
Enter your new hire's start date to get the exact date Form 8850 is due at your SWA.
Target-Group Quick Checker
Pick the circumstance that best matches your new hire to see the likely target group and its max credit under pre-lapse rules.
WOTC is one hiring credit — see every program you qualify for. GrantCompass matches your business to every federal, state, and local grant, tax credit, and loan you're eligible for. Free eligibility check, 2 minutes.
See your grants — free →Should you still file Form 8850 for a 2026 hire?
Yes — keep filing on the normal 28-day schedule. WOTC has lapsed and been retroactively reauthorized several times since 1996, most recently after a roughly 13-month gap that ran from January 2015 to December 2015. A bipartisan reauthorization bill (S. 3265 / H.R. 6231), introduced November 20, 2025, would extend WOTC through 2030 and raise the standard credit rate to 50% if it passes; as of July 2026 it had not cleared either chamber. Employers who keep submitting Form 8850 during the gap are the ones positioned to claim the credit the moment certification resumes — treat every eligible hire made today as a protective filing.
How to file Form 8850: the process, step by step
Form 8850 is the IRS's Pre-Screening Notice and Certification Request for the Work Opportunity Credit — a two-part form that starts the WOTC certification process. It does not itself grant the credit; it opens a request that your State Workforce Agency must certify before you can claim anything on your tax return. Below is the complete filing sequence, from pre-screening through claiming the credit.
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1. Pre-screen on or before the job offer
Complete Form 8850 Part I with the applicant (their self-attestation of which target group, if any, they belong to) and Part II as the employer, on or before the day you offer the job — the IRS treats a form signed after the employee's first day as generally invalid. Most employers fold this into the standard offer-letter or Day-1 onboarding packet, alongside the I-9 and W-4, so it never gets missed.
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2. Both parties sign and date it
The job applicant signs Part I and the employer signs Part II. Per the IRS instructions for Form 8850, both signatures must be dated no later than the date you submit the form to your SWA. The employee's answers are voluntary self-attestation — they can decline, and you cannot make employment conditional on their answering.
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3. Submit to your State Workforce Agency — not the IRS
This is the step most guides get wrong: Form 8850 is filed with the State Workforce Agency (SWA) in the state where the employee will work, never with the IRS. The IRS's own instructions are explicit: "Don't file Form 8850 with the IRS," and "Never attach Form 8850 to a tax return or otherwise send it to the IRS." Submission must reach the SWA no later than the 28th calendar day after the start date; for mailed forms, postmarked by that date. Most SWAs accept electronic submission as well as mail or fax — check your specific state's process.
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4. Attach ETA Form 9061 or 9062
Form 8850 travels with one companion form. ETA Form 9061 (Individual Characteristics Form) is the standard employer-completed supplement, giving the SWA the identifying details it needs to verify benefit or veteran status. ETA Form 9062 (Conditional Certification) replaces it only when the employee already carries a conditional certification from a SWA-partnered program — a vocational rehabilitation agency or a DOL-registered workforce program — in which case you simply sign and return it. Both forms must reach the SWA inside the same 28-day window as Form 8850.
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5. Identify the likely target group
Use the target-group table below (or the checker above) to see which of the 10 official categories your hire likely falls under and its maximum credit. You don't need certainty before filing — if you're unsure, submit anyway and let the SWA verify. Screening out candidates because you assume they won't qualify is the single most common way employers leave WOTC money on the table.
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6. Wait for SWA certification
Processing typically runs 2 weeks to 4 months once WOTC is fully authorized. For any hire starting on or after January 1, 2026, expect no certification until Congress reauthorizes the credit — the SWA will hold your date-stamped filing rather than deny it outright. Follow up with your SWA if you haven't heard back after 60 days once authorization resumes.
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7. Claim the certified credit
Once certified, file Form 5884 (Work Opportunity Credit) with your federal return, feeding into Form 3800 (General Business Credit). Tax-exempt employers claiming veteran hires use Form 5884-C against employer FICA tax instead. The credit is non-refundable — it can zero out your tax liability but not generate a refund — and unused amounts carry back 1 year and forward 20 years.
WOTC's 10 target groups pay from $1,200 to $9,600 per certified hire
The standard WOTC credit is $2,400 (40% of a $6,000 first-year wage cap), which covers most of the 10 target groups. Veteran subcategories range higher — up to $9,600 for a disabled veteran also unemployed 6+ months, the program maximum. Long-term family assistance (TANF 18+ months) recipients generate up to $9,000 across two years, the only category with a second-year component. Qualified summer youth pays the least at $1,200. These are the figures Form 8850 sets in motion once a hire is certified; they are currently on hold for hires after December 31, 2025.
| Target Group | Max First-Year Wage Base | Max Credit | Key Criteria |
|---|---|---|---|
| IV-A (TANF) recipient | $6,000 | $2,400 | TANF for 9 of last 18 months ending on hire date |
| Qualified veteran (SNAP) | $6,000 | $2,400 | Veteran receiving SNAP within 15 months of hire |
| Qualified veteran (unemployed 4–6 wks) | $6,000 | $2,400 | Unemployed 4–6 consecutive weeks in prior year |
| Qualified veteran (unemployed 6+ mos) | $14,000 | $5,600 | Unemployed 6+ consecutive months in prior year |
| Disabled veteran (service-connected) | $12,000 | $4,800 | Hired within 1 year of discharge |
| Disabled veteran (also unemployed 6+ mos) | $24,000 | $9,600 | Disabled veteran + unemployed 6+ months — program max |
| Qualified ex-felon | $6,000 | $2,400 | Hired within 1 year of conviction or release |
| Designated community resident | $6,000 | $2,400 | Age 18–39, lives in Empowerment Zone/Rural Renewal Community |
| Vocational rehabilitation referral | $6,000 | $2,400 | Referred by a qualifying rehab or workforce program |
| Qualified SNAP recipient | $6,000 | $2,400 | Age 18–39, SNAP for 6 of last 9 months |
| Qualified SSI recipient | $6,000 | $2,400 | SSI in month of hire or within 60 days prior |
| Long-term family assistance | $10,000/yr (2 yrs) | $4,000 yr1 + $5,000 yr2 | TANF 18+ consecutive months ending on hire date |
| Long-term unemployment recipient | $6,000 | $2,400 | Unemployed 27+ consecutive weeks, received UI |
| Qualified summer youth | $3,000 | $1,200 | Age 16–17, Empowerment Zone, May 1–Sep 15 only |
Two rate tiers apply on top of these wage caps: 25% of first-year wages if the employee works 120–399 hours, or 40% if they work 400 or more hours; fewer than 120 hours earns no credit at all. The figures in the table above assume the 40% rate. For the full 120/400-hour rate mechanics, stacking rules with other credits, and worked examples, see the complete WOTC employer guide.
Frequently asked questions about filing Form 8850
Is WOTC mandatory?
No. WOTC is entirely voluntary on both sides. Employers are never required to screen candidates or claim the credit — it's an elective tax benefit, not a hiring mandate. Employees are equally free to decline: Form 8850's target-group questions are a self-attestation, and an employer cannot require an applicant to answer them or make employment conditional on answering. Best practice is to offer the pre-screening to every new hire as routine paperwork, never singling out specific applicants — that avoids any appearance of a discriminatory pre-employment inquiry based on protected status.
Where do I file Form 8850 — the IRS or somewhere else?
Form 8850 goes to the State Workforce Agency (SWA) in the state where the employee will work — never to the IRS. The IRS's own instructions for Form 8850 state plainly: "Don't file Form 8850 with the IRS," and "Never attach Form 8850 to a tax return or otherwise send it to the IRS." The SWA reviews the form, verifies target-group eligibility, and — once WOTC is active — issues a certification letter. Only after certification do you claim the credit on Form 5884 with your tax return.
What happens if I miss the 28-day deadline?
You permanently forfeit WOTC for that hire. Form 8850 must reach the SWA no later than the 28th calendar day after the employee's start date — for mailed submissions, postmarked by that date. Per DOL's WOTC procedural guidance, SWAs are directed to automatically reject certification requests that arrive after the 28-day window. There is no late-filing exception, no extension, and no way to claim the credit retroactively on an amended return for a hire whose pre-screening was missed.
Is Form 8850 still active in 2026?
Its underlying credit is lapsed, and the IRS updated its own Form 8850 page on March 20, 2026 to read: "Form 8850 is no longer in use. The work opportunity credit does not apply to employees who begin work for the employer after December 31, 2025." That notice reflects current law, not a change in filing procedure — Department of Labor guidance (TEGL 09-25) separately directs State Workforce Agencies to keep accepting and date-stamping Form 8850 submissions during the lapse, without issuing certifications, so that employers who keep filing have a paper trail if Congress reauthorizes WOTC retroactively, as it has after every prior lapse.
What's the difference between Form 8850 and ETA Forms 9061 and 9062?
Form 8850 is the IRS pre-screening notice the employer and employee sign together. ETA Form 9061 is a Department of Labor supplemental form the employer completes alongside Form 8850, providing identifying details the SWA uses to verify benefit or veteran status. ETA Form 9062 replaces Form 9061 only when the employee arrives already conditionally certified by a SWA-partnered program — a vocational rehabilitation agency or a registered workforce program — in which case the employer simply signs and returns it instead of completing Form 9061. Both Form 8850 and one of these two ETA forms must reach the SWA within the same 28-day window.
Can a genuine rehire or a relative qualify for WOTC?
No. The employee must be a genuinely new hire — someone who never previously worked for the business — regardless of how long ago a prior stint ended. IRC Section 51(i) also excludes wages paid to a spouse, child, parent, sibling, or, for a corporation, anyone owning more than 50% of its stock. Both exclusions apply even if the individual would otherwise clearly qualify for one of the 10 target groups.
Filing Form 8850 in July 2026: what actually matters
- It goes to your State Workforce Agency, never the IRS. That single fact is the most common Form 8850 mistake.
- 28 calendar days, no exceptions. Complete Part I/II on or before the job offer; submit within 28 days of the start date or forfeit the credit permanently.
- File anyway during the lapse. WOTC is on hold for hires after December 31, 2025, but every prior lapse has ended in retroactive reauthorization — a protective filing today costs nothing and preserves your claim.
- The stakes range from $1,200 to $9,600 per hire. Disabled veterans unemployed 6+ months generate the program maximum.
Sources
- IRS.gov — Instructions for Form 8850 (28-day SWA deadline, "don't file with the IRS," signing rules)
- IRS.gov — "Form 8850 is no longer in use" (updated March 20, 2026)
- IRS.gov — Work Opportunity Tax Credit (target groups, credit amounts, authorization status)
- DOL Employment and Training Administration — How to File a WOTC Certification Request (ETA 9061/9062, SWA process)
- DOL ETA — TEGL 09-25 (lapse guidance: SWAs may accept/date-stamp Form 8850 but not certify)
- Congress.gov — H.R. 6231 / S. 3265, Improve and Enhance the Work Opportunity Tax Credit Act (pending reauthorization)