Claim a Welfare to Work tax credit for employing individuals who are considered to be long-term family assistance recipients.

A Welfare to Work tax credit can be claimed for employing individuals who are considered to be long-term family assistance recipients. The credit is 35 percent of qualifying first-year wages up to $10,000, plus 50 percent of qualifying wages up to $10,000. Thus the maximum credit for the first two years of employment is $8,500. You cannot take both Work Opportunity and a Welfare to Work tax credit.