If you run a business, you can get tax credits for hiring veterans into your business. The credit is known as the Work Opportunity Tax Credit and this credit is part of 2011’s Vow to Hire Heroes Act. But the IRS reminds you that the deadline to hire veterans and claim your credits is December 31, 2012. Here are five important things to know about the credit.
1. You may be able to claim the credit for qualified veterans who begin work on or after November 22, but before January 1.
2. If you operate a normal business for profit, the maximum tax credit you can claim is $9,600 per veteran worker. On the other hand if you operate a tax-exempt organization you may claim up to $6,240 per veteran worker.
3. The amount of credit will depend on a number of factors that include the length of the veteran's unemployment before being hired, the number of hours the veteran works and the salary you pay to the veteran during the first-year of employment.
4. If you hire a veteran disabled during his/her service to the country, you may be eligible for the maximum tax credit.
5. You must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with your state workforce agency within 28 days after the veteran starts work. At certain states you can do so electronically.
Claim the Work Opportunity Tax Credit for your business today.