With tax deadlines looming, we thought it best to revisit the specifics of WOTC for 2014 and what implications that has on your corporate taxes.
A quick reminder that for 2014 you can file for WOTC tax credits by April 30, 2014. With this unique extension, states are backlogged and may require extra time to issue your credits.
For this reason many companies filed for an extension on their corporate taxes in order to easily allocate their 2014 WOTC credits once issued.
For the 2014 tax credits they must be applied in the following order.
- 2014 Tax liability
- 2013 Tax liability
- Carry forward to the next year of liability (up to 20 years)
If you didn’t file an extension, you will still be able to file an amended return once your state has issued all tax credits for 2014.
You’ll want to make sure you discuss this with your tax preparer to make sure you properly claim your credits.