You may qualify to receive a large tax credit through the Work Opportunity Tax Credit if you’ve hired veterans between Nov. 22, 2011 and December 31, 2012. The maximum tax credit is $9,600 per worker in for-profit businesses and $6,240 per worker in tax-exempt organizations.
The exact credit amount you’d receive depends on a variety of factors, including the length of the veteran’s unemployment before being hired, the number of hours the veteran works, and the amount of the wages the veteran receives during the first-year of employment.
In order to receive the credit, employers need to file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency. The form must be filed within 28 days after the qualified veteran starts work.
For more information, see:
- Expanded Work Opportunity Tax Credit Available for Hiring Qualified Veterans
- VOW to Hire Heroes Act – Frequently Asked Questions and Answers
- Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit
- IRS video, Work Opportunity Tax Credit – English | Spanish