Veterans Day is an opportunity to honor and thank the men and women who have served our country through military service. Unfortunately, there are obstacles to returning to civilian life including finding employment. The US Department of Labor reports that in October 6.9% of veterans were unemployed and this number increases to 10% when looking at veterans who served after the September 11th, 2001 attacks (http://www.bls.gov/news.release/empsit.t05.htm).
If you are a business owner and you want to help there are tax incentives for doing so. The American Taxpayer Relief Act of 2012 (ATRA) extends the Work Opportunity Tax Credit (WOTC) for hiring qualified veterans through December 31, 2013. To qualify for the 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.
This credit can be up to $5,600 for every long-term unemployed veteran hired and $9,600 for each disabled veteran hired. The credit is used to offset business owners’ individual income tax. There is the desire to extend this credit, but under current tax law employers have until December 31, 2013 to hire a qualified veteran to receive the credit. Be sure to discuss the specifics of your scenario with a CPA before assuming that you will receive the full credit.
Thank you to all our veterans for the sacrifices you have made for our freedom!