Long Term Family Assistance

Long-Term Family Assistance (LTFA) is a benefit program under the Work Opportunity Tax Credit (WOTC). Employers can receive tax credits of up to $9,000 per qualified new hire.

This program was recently extended through 2020; with retroactive application to January 1, 2015.

To qualify for LTFA, the individual must meet the following criteria:

• They must have received Temporary Assistance to Needy Families (TANF) or Aid to Families with Dependent Children (AFDC), for a total of at least 18 months anytime after August 1997,or
• They must have received TANF or AFDC for at least the 18 consecutive months before the date of hire, or
• They were hired within two years after their TANF or AFDC eligibility expired under federal or state law.

New York State TANF benefits can last up to 60 months. Individuals transitioning to New York’s Safety Net program are eligible for the LTFA credit under this rule.

The added benefits of receiving LTFA are as follows:

• The employer can claim the benefits for 24 months (WOTC patron can only be claimed for the initial 12 months).

The employer can claim benefits up to 40% of the first $10,000 during the first 12 months (WOTC can claim only 40% of the first $6,000 in wages).

The employer can claim benefits up to 50% of the first $10,000 during the second 12 months.

Under LTFA, employers are therefore eligible for up to $4,000 of benefits in the first year and an additional $5,000 in the second year, for a total savings of $9,000 per qualified employee.

LTFA is processed as part of the WOTC.