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Hiring a returning war veteran may not only land a business an excellent employee, but it may also provide a nice tax credit as part of the VOW to Hire Heroes Act. New updates are making it easier and faster to process tax credit requests, too.
The credit can reach up to $9,600 per veteran hired by a for-profit business and up to $6,240 for a non-profit organization. Businesses may claim the tax credit on income tax returns.
New forms and an expanded list of qualifying employers now make it easier to obtain certification needed to verify that a veteran meets program guidelines. New faster electronic submission options are more quickly confirming the credit amount that’s due employers.
The amount of credit depends upon:
- Length of the veteran’s unemployment before being hired
- Hours a veteran works
- Amount of first-year wages paid
Businesses that hire qualifying veterans with service-related disabilities also receive the tax credit, many at the maximum allowable tax credit amount.
All of this is an on-going effort to help veterans returning from wars and military actions abroad to adjust to civilian employment opportunities.
Supporters of the tax credit say often business owners who were first attracted to the idea of hiring a veteran because of the tax credit have gladly discovered that the veterans offer a broad skills base and a strong work ethic.
The Department of Labor reports that 20.2 million men and 1.8 million women in America aged 18 and over are veterans who have served on active duty in the U.S. armed forces. Numbers reflect that male veterans who served in the Gulf War Era have an unemployment rate of 21.9%.
Survey results also show approximately 25% of Gulf War Veterans have returned home with a service-connected disability. Current numbers reveal roughly 10% of disabled veterans who are seeking work remain unemployed.
IRS Tax Forms 8850, 5884 and 3800 provide instructions on how to file for the VOW to Hire Heroes credit. If you have any questions, please don’t hesitate to ask one of our experts at McRuer CPAs.
