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IRS Offering Businesses Credits For Hiring Veterans

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Get Tax Credits For Hiring Veterans

As Part of it’s Work Opportunity Tax Credit,  the IRS is offering credits to businesses that hire veterans.  With Veterans Day just passing, this is good time for the IRS to put this credit into the news.  The following are a list of criteria for businesses to qualify for the Work Opportunity Tax Credit:

  • Employers may be able to claim the credit for qualified veterans who begin work on or after Nov. 22, but before Jan 1. 
  • 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 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.
  • 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. It must be filed within 28 days after the veteran starts work. Some states accept the form electronically.

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