Printable Form 2026

IRS Form 8850 – IRS Forms, Instructions, Pubs 2026

IRS Form 8850 – IRS Forms, Instructions, Pubs 2026 – Employers seeking to reduce their federal tax liability through the Work Opportunity Tax Credit (WOTC) must use IRS Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit). This form serves as the critical first step for pre-screening job applicants and requesting official certification that a new hire belongs to one of the IRS-designated targeted groups facing employment barriers.

The WOTC remains available for eligible wages paid to qualified new hires who begin work on or before December 31, 2025. Proper and timely use of Form 8850 helps businesses of all sizes—including tax-exempt organizations hiring qualified veterans—claim this valuable general business credit.

What Is IRS Form 8850 and Why Is It Required?

Form 8850 allows employers to:

  • Pre-screen potential employees on or before the day a job offer is made.
  • Request certification from the State Workforce Agency (SWA) (also called the designated local agency or DLA) in the state where the employee works.

Certification is mandatory before claiming the WOTC. Without it, employers cannot claim the credit on Form 5884 (Work Opportunity Credit) or Form 5884-C (for certain tax-exempt employers).

The current version is Form 8850 (Rev. March 2016), with instructions revised in March 2021. No newer revision exists as of January 2026.

Who Should Use IRS Form 8850?

Any U.S. employer (taxable or certain tax-exempt) hiring from targeted groups can use it. This includes small businesses, large corporations, nonprofits, and organizations in U.S. territories. The credit applies only to new hires—not rehires—and requires the employee to work at least 120 hours in the first year.

Overview of the Work Opportunity Tax Credit (WOTC) Benefits

The WOTC provides a credit of up to $2,400 per eligible employee (higher for certain veterans, up to $9,600). It is calculated as:

  • 40% of first-year wages up to $6,000 (for ≥400 hours), or
  • 25% for 120–399 hours.

Tax-exempt employers claim it only against the employer’s share of Social Security taxes for qualified veterans. Unused credits can generally be carried back 1 year and forward 20 years.

The 10 Targeted Groups for WOTC Eligibility

Job applicants check applicable boxes on Form 8850. Here is a complete list with official definitions (as of the March 2016 form and 2021 instructions):

  1. Qualified IV-A Recipient — Family received TANF assistance for any 9 months in the 18-month period ending on the hiring date.
  2. Qualified Veteran — Includes subcategories based on SNAP receipt, unemployment periods (4+ weeks or 6+ months), or service-connected disability.
  3. Qualified Ex-Felon — Convicted of a felony and hired within 1 year of conviction or prison release.
  4. Designated Community Resident — Ages 18–39 living in an empowerment zone or rural renewal county.
  5. Vocational Rehabilitation Referral — Referred by an approved state agency, Ticket to Work program, or VA.
  6. Qualified Summer Youth Employee — Ages 16–17 (on May 1 or hire date), works May 1–Sept 15, lives in empowerment zone, first-time with employer.
  7. Qualified SNAP (Food Stamps) Recipient — Ages 18–39; family received SNAP for 6 months or 3 of 5 months ending on hire date.
  8. Qualified SSI Recipient — Received SSI benefits in any month within 60 days before hire.
  9. Long-Term Family Assistance Recipient — Family received TANF for 18+ months (consecutive or specific post-1997 rules).
  10. Qualified Long-Term Unemployment Recipient — Unemployed 27+ consecutive weeks (with unemployment compensation for some/all of the period) on the day before starting work or completing the pre-screening.

For veterans in groups involving service-connected disability or specific unemployment, the credit amount increases.

Note: Box 1 is for those with prior conditional certification (e.g., via ETA Form 9062). Additional DOL forms (ETA 9061 or 9062, plus ETA 9175 for long-term unemployed) are often required alongside Form 8850.

Step-by-Step: How to Complete IRS Form 8850?

Page 1 – Job Applicant Completes (on or before job offer day):

  • Personal information: Name, SSN, address, county, phone, date of birth (if under 40).
  • Check all applicable boxes (1–7) that describe their situation.
  • Sign and date under penalties of perjury.

Page 2 – Employer Completes:

  • Employer details: Name, EIN, address, contact person.
  • Enter group number (4 or 6) if applicable based on age/address.
  • Record key dates: When information was given, job offered, hired, and started work.
  • Sign and date requesting certification.

Both signatures must occur no later than the submission deadline.

Download the official form here: IRS Form 8850 PDF (provided link).
Instructions PDF: Available on IRS.gov (search “Instructions for Form 8850”).

Critical Deadlines and Submission Process

  1. Complete pre-screening (Form 8850) on or before the day the job offer is made.
  2. Submit Form 8850 (plus required ETA forms) to the SWA in the state where the employee works — no later than the 28th calendar day after the start date.
  3. Do not send to the IRS.

Contact your state’s WOTC coordinator via the Department of Labor directory for exact submission methods (mail, fax, or electronic—availability varies by state). Keep copies of everything for at least 3 years.

How to Claim the Credit After Certification?

Once the SWA issues certification:

  • Taxable employers: File Form 5884 and attach to Form 3800 on your income tax return.
  • Tax-exempt employers (qualified veterans only): File Form 5884-C after the related employment tax return.

Wages used for WOTC generally cannot overlap with other wage-based credits.

Common Mistakes to Avoid

  • Missing the 28-day submission deadline (strictly enforced).
  • Failing to complete pre-screening before the job offer.
  • Submitting incomplete forms or omitting required ETA forms.
  • Claiming the credit without SWA certification.
  • Using the form for rehires or non-targeted groups.

Always verify current rules on IRS.gov, as disaster relief or retroactive extensions may occasionally apply.

Frequently Asked Questions (FAQ)

  • Is Form 8850 still required in 2026?
    Yes, for any hires eligible for WOTC wages paid through 2025.
  • Can I submit electronically?
    Some states allow it—check with your SWA.
  • What if the credit expires and is extended?
    The IRS may provide additional filing time.
  • Do I need a CPA or tax professional?
    Recommended for claiming the credit and ensuring compliance.

Final Thoughts: Maximize Your WOTC Savings in 2026

IRS Form 8850 is the gateway to thousands in tax savings for employers who hire from targeted groups. By following the pre-screening, submission, and certification process exactly, businesses support workforce development while reducing tax burdens.

Official Resources:

Always consult the latest IRS instructions or a qualified tax professional for your specific situation, as tax laws can change. Download your copy of Form 8850 today and start pre-screening eligible candidates to unlock the full benefits of the Work Opportunity Tax Credit.