IRS Issues Guidance for Employers on Tax Credit for Hiring Veterans
On Feb. 9, 2012, the IRS released guidance and forms that employers may use to claim the newly-expanded tax credit for hiring veterans as outlined in the Veterans Opportunity to Work (VOW) to Hire Heroes Act of 2011.
Enacted Nov. 21, 2011, the VOW Act provides an expanded Work Opportunity Tax Credit to businesses that hire eligible unemployed veterans, and for the first time, also makes the credit available to certain tax-exempt organizations. While the VOW Act offers many direct benefits to personally assist the nation’s veterans, such as education and training programs, for employers, the law provides tax incentives when qualifying unemployed veterans are hired and begin work between Nov. 22, 2011, and Dec. 31, 2012.
Up to $2,400 in tax credits are available for employers who hire veterans who have been unemployed at least four weeks; up to $5,600 for hiring veterans who have been unemployed longer than six months; and up to $9,600 for employers that hire veterans who have service-connected disabilities and have been unemployed longer than six months.
For additional information on the VOW Act, click here. For details on claiming the credit, click here.
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