IRS: Tax credit available for employers who hire veterans

Staff writerDecember 4, 2013 

Attention employers – especially those who employ or who are thinking of employing veterans.

There’s a tax credit waiting for you.

Those businesses that employ veterans may be able to claim the federal Work Opportunity Tax Credit, which could be worth thousands of dollars, according to an IRS release this week.

One catch: The WOTC is available to employers that hire qualified veterans before the new year.

WOTC facts:
• Hiring Deadline. Employers hiring qualified veterans before Jan. 1 may be able to claim the WOTC. Although it had been set to expire last year, the American Taxpayer Relief Act of 2012 extended it for one year.
• Maximum Credit. The tax credit limit is $9,600 per worker for employers that operate a taxable business. The limit for tax-exempt employers is $6,240 per worker. 
• Credit Factors. The credit amount depends on a number of factors. They include the length of time a veteran was unemployed and the number of hours worked, among others.

• 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. They must file the form within 28 days after the qualified veteran starts work. For more information, visit the U.S. Department of Labor’s WOTC website

For more about this topic, visit IRS.gov and enter WOTC in the search box.

The News Tribune is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service