Employers could receive thousands of dollars through an Internal Revenue Service tax credit by hiring veterans by the end of this year, a spokeswoman for the agency said.
For businesses to qualify for the Work Opportunity Tax Credit, veterans would have to be hired and begin work before the new year, IRS Spokeswoman Dianne Besunder said.
The credit is part of 2011’s Vow to Hire Heroes Act. Here are six important things to know about the credit.
1. Employers may be able to claim the credit for qualified veterans who begin work on or after Nov. 22, but before Jan. 1.
2. 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.
3. The amount of credit will depend on 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.
4. Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
5. Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency. It must be filed within 28 days after the veteran starts work. Some states accept the form electronically.
For more information on the credit, visit the IRS’s website and enter ‘WOTC’ into the search field.