Employers hiring veterans by year’s end may receive an expanded tax credit. According to the IRS employers planning to claim this tax credit for hiring certain veterans should act fast. 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.
Six key facts to know about the WOTC as expanded by VOW to Hire Heroes Act or 2011 are:
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 credit for employers that operate for-profit businesses is $9,600, or $6,240 per worker for tax-exempt organizations.
Credit Factors: The amount of credit will depend on a number of factors. Such factors include 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. The form must be filed within 28 days after the qualified veteran starts work.
E-file: Some states accept Form 8850 electronically.
Visit the IRS.gov website and enter ‘WOTC’ in the search field for forms and more details about the expanded tax credit for hiring veterans.
To see how we can help you receive your expanded tax credit, make an appointment with us today at 401-254-0151. We look forward to hearing from you.