November 19th, 2012
Employers who hire certain veterans can claim an expanded tax credit, but they must act soon, said Internal Revenue Service officials.
Many businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, but only if the veteran starts work before the new year.
The VOW to Hire Heroes Act of 2011 states:
- Employers may be able to claim the expanded credit for qualified veterans who start work between Nov. 22, 2011 and Jan. 1, 2013.
- The maximum tax credit is $9,600 per worker for businesses, or $6,240 per worker for nonprofits.
- The amount of credit will depend on factors like the length of the veteran’s unemployment before being hired, the number of hours he/she works and his/her wages during the first year of employment.
- Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
- Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency within 28 days after the qualified veteran starts work.
For additional information, visit the U.S. Department of Labor’s Work Opportunity Tax Credit website.
Visit IRS.gov and enter “WOTC” in the search field for forms and more details about the expanded tax credit for hiring veterans.