MCB Accounting Blog

Employers Need to Act Soon to Get Expanded Tax Credit for Hiring Vets

The IRS has warned employers that they only have until June 19 to qualify for an expanded tax credit of up to $9,600 for hiring veterans. Employers that hired unemployed veterans in late 2011 and early 2012 were given an extended period to request the required certification for claiming the expanded Work Opportunity Tax Credit (WOTC).  The expanded period ends Tuesday, June 19. Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agencies by that date in order to receive the credit.

The credit applies to eligible veterans hired on or after November 22, 2011 and before May 22, 2012. 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 factors such as the length of the veteran%u219s unemployment before hiring, the hours the veteran works and the amount of first-year wages paid. Employers who hire veterans with service-related disabilities may be eligible for the maximum credit.

Click here for the complete AccountingToday.com article.  More details about the expanded WOTC and the applicable forms are available from the IRS website.

Contact an MCB Tax Adviser at 703.218.3600 and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

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