IRS to Employers: Hire Veterans by Dec. 31 and Save on Taxes! If you plan to hire soon, consider hiring veterans. If you do, you may be able to claim the federal Work Opportunity Tax Credit (WOTC) worth thousands of dollars. You must act soon. The WOTC is available to employers that hire qualified veterans before the new year. Here are six key facts about the WOTC: 1. Hire before Jan. 1, 2014. 2. The tax credit limit is $9,600 per worker for employers that operate a taxable business. The limit for tax-exempt employers is $6,240 per worker. 3. The credit amount depends on a number of factors, including: length of time a veteran was unemployed, number of hours worked and the amount of the wages paid during the first year of employment. 4. Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit. 5. Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency. 6. Some states accept Form 8850 electronically.
Posted on: Tue, 03 Dec 2013 18:47:17 +0000
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