IRS Hot Topics: Possible Expanded Tax Credit for Hiring Veterans by Year’s EndDecember 11, 2012
Our IRS Hot Topics blog series reviews the latest news and rulings straight from the IRS.
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. The requirements for the expanded credit include:
- Veterans must begin work before the New Year (1/1/2013).
- The maximum credit is $9,600 per worker and $6,240 for tax-exempt organizations.
- The amount of credit is based on several different factors including length of 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.
- Hiring veterans with service-related disabilities can maximize the amount of credit.
- Employers must file Form 8850 with their state workforce agency within 28 days after the qualified veteran starts work. Some states accept this form electronically.