Form 8850 is the IRS pre-screening notice an employer uses to start the certification process for the Work Opportunity Tax Credit (WOTC). It is not the form that claims the credit. It is the form that asks a State Workforce Agency (SWA) to verify that a new hire belongs to one of ten targeted groups, which is the step that unlocks the credit later on the employer’s tax return. The applicant fills out one half, the employer fills out the other, and the completed form has to reach the SWA within 28 days of the employee’s start date.
What Form 8850 Actually Does
The form has one job: pre-screening. It collects yes-or-no answers from the applicant about circumstances that would place them in a WOTC target group, and it records the employer’s information and the key dates the SWA needs. Both signatures are made under penalty of perjury.
Form 8850 does not go to the IRS. The IRS instructions specifically warn against filing it there. It goes to the SWA in the state where the employee works, which reviews the paperwork, checks eligibility, and issues a certification letter back to the employer. Only after that certification does the credit become claimable.
Who Can Be Certified
An employer can only pursue the WOTC for a new hire who fits one of ten target groups defined in 26 U.S.C. § 51(d). In brief, the groups are:
- Qualified IV-A (TANF) recipients — family received TANF for at least 9 of the 18 months ending on the hiring date.
- Qualified veterans — including those receiving SNAP, those unemployed for specified periods, and those with a service-connected disability.
- Qualified ex-felons — hired within one year of conviction or release, whichever is later.
- Designated community residents — ages 18 to 39 living in an Empowerment Zone.
- Vocational rehabilitation referrals — referred by a state VR agency, the VA, or a Ticket to Work Employment Network.
- Qualified summer youth employees — ages 16 or 17, Empowerment Zone residents, working May 1 through September 15.
- Qualified SNAP recipients — ages 18 to 39, with the family benefit history described in § 51.
- Qualified SSI recipients — received SSI in any month within the 60 days before hiring.
- Long-term family assistance recipients — 18 consecutive months of TANF, or benefits ended within the past 2 years due to a time limit.
- Qualified long-term unemployment recipients — unemployed at least 27 consecutive weeks, with unemployment compensation during part of that time.
The SWA makes the final call on whether a hire actually qualifies.
Filling Out Section A: The Applicant’s Part
The applicant completes Section A on or before the day the job offer is made. They provide their name, Social Security number, and address, then answer a series of yes-or-no questions about veteran status, SNAP or TANF benefits in their household, felony history, SSI, and unemployment duration. Those answers are what flag possible target group membership. The applicant then signs under penalty of perjury.
Completing Form 8850 is voluntary for the applicant. Someone can refuse, and that refusal cannot legally affect whether they are hired. If they decline, the employer simply cannot pursue the WOTC for that hire.
Filling Out Section B: The Employer’s Part
The employer records the business name, address, and Employer Identification Number, along with the job offer date, the hire date, and the employee’s start date. Based on the applicant’s Section A answers, the employer indicates which target group the applicant appears to belong to. The employer signs, also under penalty of perjury.
Both parts must be filled out by the day the job is offered. That timing is what makes Form 8850 a pre-screening notice rather than a post-hire filing.
The Companion Form: ETA 9061 or 9062
Form 8850 does not travel alone. The employer must send it to the SWA along with either ETA Form 9061 (Individual Characteristics Form) or ETA Form 9062 (Conditional Certification).
Form 9061 is the usual one. It gathers the detailed background information the SWA uses to verify the target group. Form 9062 is the shortcut, used only when a participating agency such as a vocational rehabilitation office or TANF agency has already pre-certified the applicant as a target group member.
The 28-Day Deadline
Form 8850, together with the companion ETA form, must reach the SWA within 28 calendar days of the employee’s first day of work for pay. That clock starts on the day the employee first performs services for pay, not the offer date and not the paperwork date.
The deadline is firm. Miss it and the employer loses the WOTC for that hire, no matter how clearly the person would have qualified. The form goes to the SWA in the state where the employee works. Each state has a designated WOTC coordinator handling certification requests.
Limited exceptions exist. The IRS has postponed the 28-day window for taxpayers affected by federally declared disasters, and when the WOTC itself lapses and is later renewed retroactively, the IRS typically grants additional filing time for workers hired during the gap period.
How to Submit
Most states operate online WOTC portals for electronic submission of Form 8850 and its companion form. Federal guidance requires each SWA to offer at least two submission methods, which may include an online portal, postal mail, or fax. Electronic signatures are permitted under IRS Notice 2012-13 as long as the employer’s system verifies the signer’s identity and preserves the perjury statement. If an employer cannot access the state’s online system, the SWA must provide an alternative method.
Documentation the SWA May Request
The SWA can ask for records showing the new hire actually belongs to the claimed target group. What it asks for depends on the group:
- Veterans: DD-214 discharge papers, VA letters certifying a service-connected disability, and unemployment insurance records where relevant.
- TANF and SNAP recipients: benefit history printouts, case numbers, or signed statements from authorized agency personnel confirming months of benefits.
- Ex-felons: court records, correction institution records, or a parole officer’s statement.
- SSI recipients: evidence of SSI benefits or authorization records from the Social Security Administration.
- Vocational rehabilitation referrals: contact information for the referring agency or a VA separation letter for disabled veterans.
- Designated community residents and summer youth employees: proof of age (birth certificate, driver’s license, or school ID) and proof of Empowerment Zone residency.
- Long-term unemployment recipients: unemployment insurance claims records or the self-attestation form ETA Form 9175.
Employers do not need to gather everything before submitting Form 8850. SWAs often have access to certain records through interagency data sharing. Still, having documentation ready shortens the certification timeline.
After Certification: Claiming the Credit
Once the SWA sends back a certification letter, the employer claims the credit in two steps. The credit is calculated on Form 5884 (Work Opportunity Credit) using the certified employee’s qualifying wages and hours. That amount then flows onto Form 3800 (General Business Credit), which is filed with the employer’s federal income tax return.
The WOTC is non-refundable. It can bring an employer’s income tax to zero but does not generate a refund. Unused credit can be carried back one year or forward up to 20 years under the general business credit rules.
Tax-exempt employers follow a different path and only for qualified veterans. They file Form 5884-C to claim the credit against their share of payroll taxes, and the credit is refunded rather than applied against income tax.
Records to Keep
Employers should keep copies of every Form 8850 submitted, any transmittal letters sent to the SWA, and the certification letters received in return. The IRS requires retention for at least 3 years from the date the tax return claiming the credit is due or filed, whichever is later. Keeping records for about four years from filing gives a comfortable margin.
Because both signatures on Form 8850 are made under penalty of perjury, false statements on the form carry the same consequences as lying on a tax return.
Whether the WOTC Still Applies to Your Hire
The WOTC applies to wages paid to qualifying individuals who began work on or before December 31, 2025. As of early 2026, the statutory authority for the credit has expired and Congress has not enacted an extension, though bipartisan renewal legislation was introduced in late 2025. Employers who hired qualifying workers before the end of 2025 can still complete certification and claim the credit for those hires. New hires starting after December 31, 2025 do not currently qualify.
Congress has retroactively extended the WOTC before, and when it does, the IRS typically provides additional time to submit Form 8850 for workers hired during the lapse. Employers hiring from the target groups should keep collecting Form 8850 from applicants at the offer stage so they can move quickly if a renewal passes. The IRS WOTC page carries the current status.