What is the working tax credit?

The working tax credit is the federal tax credit available to employers who hire people from certain groups that have overcome obstacles to gain employment, explains the U.S. Department of Labor explains. The credit helps individuals move from economic dependency toward self-sufficiency by earning their own income.

As this program works to give individuals the opportunity to earn a steady income and pay taxes, participating employers are able to reduce their income tax liability by hiring these individuals, says the U.S. Department of Labor. The tax credit can range from $1,200 to $9,600 as of 2015, and this is dependent upon the employee hired.