HIRE VETERANS? DEADLINE NEARS TO FILE TAX CREDIT FORM

A deadline to receive a tax credit is approaching for employers who have hired military veterans.

Congress expanded the Work Opportunity Tax Credit late last year for employers that hire eligible unemployed veterans. Normally, an employer must file Form 8850, "Pre-Screening Notice and Certification Request for the Work Opportunity Credit," with the state workforce agency within 28 days after the eligible worker begins work.

But under a special rule, employers have until June 19, 2012, to complete and file this form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule again applies to eligible veterans hired on or after May 22.

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, including the length of the veteran's unemployment before hire, hours a 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.

If you hired an eligible veteran, you can fax or electronically transmit Form 8850 to your state workforce agency, as long as the agency is able to receive the certification forms in that manner.

Read more about the expanded credit on the IRS website.

 
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