Employers planning to claim an expanded tax credit for hiring veterans should act soon to qualify to receive the Work Opportunity Tax Credit, according to the IRS.
Employees who are veterans need to have started work before Jan. 1 for businesses to qualify for the tax credit, which was expanded by the Hire Heroes Act of 2011.
The maximum tax credit is $9,600 per worker for employers that operate for-profit businesses and $6,240 per worker for tax-exempt organizations, according to the IRS. The actual amount will depend on the length of the veteran's unemployment, the number of hours the veteran works, his or her wages during the first year of employment and whether the veteran has any service-related disabilities.
To receive the 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.
For more information, go to IRS.gov and enter 'WOTC' in the search field.