Possible tax credits for hiring veterans
Posted: Wednesday, November 14, 2012 12:00 am
Employers planning to claim an expanded tax credit for hiring certain veterans should act soon, according to the IRS. Many businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, but only if the veteran begins work before the new year. Some key facts:
Hiring Deadline: Employers may be able to claim the expanded WOTC for qualified veterans who begin work on or after Nov. 22, 2011 but before Jan. 1, 2013.
Maximum Credit: The maximum tax credit is $9,600 per worker for employers that operate for-profit businesses, or $6,240 per worker for tax-exempt organizations.
Credit Factors: The amount of credit will depend on a number of factors, including the length of the veteran’s unemployment before being hired, the number of hours the veteran works and the amount of the wages the veteran receives during the first-year of employment.
Disabled Veterans: Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
State Certification: Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency.
E-file: Some states accept Form 8850 electronically. Published in The WCP 11.13.12