Hire a veteran, get a tax break
Friday, February 10th, 2012
The IRS has provided new information (and paperwork!) about the newly-expanded tax credit for hiring veterans. The VOW to Hire Heroes Act of 2011, enacted Nov. 21, 2011, provides an expanded Work Opportunity Tax Credit (WOTC) to businesses that hire eligible unemployed veterans and for the first time also makes the credit available to certain tax-exempt organizations.
The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations. The amount of the credit depends on a number of factors, and employers who hire service-disabled veterans may be eligible for the maximum credit.
Normally, an employer must file forms with the state workforce agency within 28 days after the worker begins employment to receive a work opportunity credit. The new IRS guidance gives employers until June 19, 2012 to file the new Form 8850 (form, instructions) for workers hired between November 22, 2011, and May 22,2011.
I had the privilege of visiting the Tennessee Veterans Business Association‘s annual Business Expo and Job Fair in January at the Knoxville Convention Center. The ballroom was filled with booths and representatives of companies (many of them veteran-owned), educational institutions, support agencies, and job seekers. They all contributed to an atmosphere of support for veterans who continue to serve our nation in civilian life.
Ever humble, Van minimizes the importance of his service in the National Guard, when his unit was called up to active duty for a short time. But he is proud of his service, and he acknowledges the important role it played in shaping his character. Veterans are members of a very special, elite club.