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.
• 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.