How Fair-Chance Employers Use the WOTC Tax Credit
If you're a job seeker with a record, the WOTC is your strongest negotiating point. Understanding it helps you have better conversations with employers.
What Is the WOTC?
The Work Opportunity Tax Credit (WOTC) is a federal tax incentive that rewards employers for hiring people from certain target groups — including people with felony convictions.
How Much?
- Standard: $2,400 credit (40% of first $6,000 in wages if employed 400+ hours)
- Maximum: $9,600 for long-term family assistance recipients
- Typical fair-chance hire: $2,400–$4,800 depending on hours worked
What Qualifies?
A person qualifies if they were convicted of a felony AND hired within 1 year of conviction or release from prison. The employer applies for the credit through IRS Form 8850.
How to Use This in Conversations
If an employer is hesitant: 1. Tell them about the WOTC 2. Offer to bring documentation (release papers, conviction date) 3. Ask them to consult their accountant
Many small businesses don't know this credit exists. Knowing it yourself puts you in a stronger position.
OpenPath's WOTC Calculator
Use the WOTC Calculator to show any employer exactly what their credit would be.