Receive a Tax Credit of up to $9600 for Every Eligible Veteran Hired
How can your organization claim a tax credit for hiring veterans?
With the passage of the Returning Heroes and Wounded Warrior Tax Credits on November 21, 2011, employers can claim up to $5,600 for hiring unemployed veterans under the Returning Heroes Tax Credit, and $9,600 for hiring long-term unemployed veterans with service-connected disabilities under the Wounded Warriors Tax Credit. These credits are available through December 31, 2012, for qualified veterans.
Who is an eligible veteran?
Returning Heroes Tax Credit
Short-term Unemployed: A new credit of 40% of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed at least 4 weeks. Long-term Unemployed: A new credit of 40% of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been unemployed longer than 6 months.
Wounded Warrior Tax Credit
Veterans with Services-Connected Disabilities: Maintains the existing Work Opportunity Tax Credit for veterans with service-connected disabilities not more than one year after being discharged from the military, which is up to 40% of the first $12,000 of wages (up to $4,800). Long-Term Unemployed Veterans with Services-Connected Disabilities: A new credit of 40% of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities veterans with service-connected disabilities who have been unemployed longer than 6 months.
How can you file for these credits?
You must submit the IRS 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit). You will need to mail the form to the WOTC Coordinator within your State Workforce Agency (do not mail to the IRS). For the name and contact information of the WOTC Coordinator for your state, click here.
PLEASE NOTE: Orion ICS, LLC, 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.
