Work Opportunity Tax Credit for Employers

• Texas’ preferred submission method is through the online portal; however, you can still submit by mail or email.   
• Effective February 20, 2024, Texas WOTC will no longer accept fax applications.
• Effective February 20, 2024, both the IRS 8850 and ETA 9061/9062 must be submitted within 28 days of the start date.
• Texas will accept electronic signatures that comply with IRS Notice 2012-13.
• Applications indicating forthcoming documents have 28 days from the hire date to upload forthcoming documents. On the 29th day the application will receive a “Denial Pending More Information” notification. You will have 365 days from the date of the denial letter to submit the documents.  
• After 365 days, Texas WOTC will process the application and issue a final determination. There is no appeal available.
• Denied claims that did not indicate forthcoming documents can be appealed up to 90 days from the date of the denial letter.
• Texas will not accept redetermination requests for issued certificates.
• The date the employer signs ETA Form 9198 is when the authorization becomes effective. 

TEGL 22-22 provided new information about revised forms and changes to employer representative declarations.

• Starting October 1, 2023, only ETA forms revised May 2023 will be accepted.
• After May 31, 2024, IRS Form 2848 will no longer be valid.
• Starting June 1, 2024, only ETA Form 9198 will be accepted as valid Employer Representative Declarations.
• The authorization period for ETA Form 9198 cannot be more than five years.
• The date the employer signs ETA Form 9198 is when the authorization becomes effective. 
• The Employer identification Number (EIN) must be a tax identification number registered in the state where the employer’s business is located and WOTC applications are submitted.

The State of Texas Tax Refund for Employers of TANF or Medicaid Clients is another tax benefit for employers. To qualify, an employer must:

• Pay certain State of Texas taxes.
• Have paid wages to a Texas resident during their first year of employment, and the resident had received at least one month of TANF or Medicaid benefits within six months of starting the job.
• Provide and cover a portion of a qualifying employee's HMO health plan, self-funded or self-insured Employee Retirement Income Security Act (ERISA) plan, or a health plan approved by the Texas Commissioner of Insurance.
• Mail the forms between January 1 and April 1 of the following year, after taxes and wages were paid.

Through the Texas Tax Refund for Employers of TANF or Medicaid Clients program, employers can get a refund of up to $2,000 for each eligible employee they hire.

To apply, complete TWC Form 1098, Application for Refund of Taxes Paid to the State of Texas.

Processing times for applications range from 25 to 90 days. To check the status of an application, contact our help desk using the contact information on this page. Please have the employee's name and Social Security number ready.

If a claim is denied, you may ask for a review by providing more information. Include the necessary documents for the target group and the WOTC claim number from the denial letter or report. Remember, you must ask for a claim review within one year of the original denial.

If TWC's WOTC unit needs more information, they will send a letter asking the employer to provide that information. The employer must respond within 60 days, or the application will be closed.

Important things to consider when submitting electronically:

• Your email confirmation is your proof of timely filing and should be kept with your records.
• Applications submitted by email should be password-protected.  Send the file password in a separate email.
• By submitting forms email, you are agreeing to become the “owner” of the records. The original forms must be kept for the required retention period (four years for certifications and one year for denials).