Wednesday, September 28, 2011

Tax Credits for Hiring Veterans

The temporary addition of Unemployed Veterans to the Work Opportunity Tax Credit Program under the American Recovery & Reinvestment Act of 2009 has ended, but employers can still earn a tax credit of up to $4800 for hiring eligible veterans under the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010, which extended the WOTC program through December 31, 2011.

Who is an eligible veteran?

- A veteran who is a member of a family that is receiving or recently received SNAP benefits for at least a three-month period during the past 15 months;

- Disabled veterans who are entitled to compensation for a service-connected disability and who, during the one-year ending on the hiring date, were:

Discharged or released from active duty in the U.S. Armed Forces, or
Have aggregate periods of unemployment that equal or exceed six months.

Veterans must have begun to work for an employer after December 31, 2006, and before January 1, 2012.The credit is 25% of qualified first-year wages for those employed at least 120 hours but fewer than 400 hours and 40% for those employed 400 hours or more. The first-year wages taken into account for these “disabled veterans” are capped at $12,000. Your organization can claim a one year tax credit of 40% of up to the first $12,000 in wages, or $4800.

For more information, you can contact the WOTC Coordinator within your State Workforce Agency. For the name and contact information of the WOTC Coordinator for your state, click here.

PLEASE NOTE: Hire a Hero, Hire a Vet, its affiliates and its employees are not in the business of providing tax or legal advice to any taxpayer. This content is for general information purposes only, and is not intended or written to be used without the advice of the taxpayer’s independent tax advisor.

No comments:

Post a Comment