The Internal Revenue Service is reminding employers who plan to claim an expanded tax credit for hiring certain veterans that they should act soon.
Businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, but only if the veteran begins work before the new year.
That credit was expanded by the VOW to Hire Heroes Act of 2011.
Some key facts to know:
>> Employers may be able to claim the expanded WOTC for qualified veterans who begin work on or after Nov. 22, 2011, but before Jan. 1, 2013.
>> The maximum tax credit is $9,600 per worker for employers that operate for-profit businesses, or $6,240 per worker for tax-exempt organizations.
>> The amount of credit will depend on a number of factors, such as the length of the veteran’s unemployment before being hired, the number of hours the veteran works and the amount of wages the veteran receives during the first year of employment.
>> Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
>> Employers must 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. Some states accept Form 8850 electronically.
For more information, visit the IRS.gov website and enter “WOTC” in the search field.