Measure Helps Nation’s Brave While in Job Market
The IRS is giving an assist to the nation’s veterans in a tough job market, but it’s also an assist for employers.
With two wars winding down and thousands of veterans looking to get back into civilian life during a stubborn recession, the IRS is letting job creators know about how to take advantage of veterans employment tax credits.
After serving Uncle Sam overseas and in uniform, veterans are coming back to the job market in increasing numbers. Their discipline and work ethic instilled in them during their tours of duty are something employers could appreciate when looking to expand their workforce.
The VOW to Hire Heroes Act gives employers an expanded Work Opportunity Tax Credit to hire veterans who need a job. It runs as high as $9,600 for businesses, and $6,240 for non-profits.
Various factors help determine the credit, like work schedule, amount of time the veteran was unemployed, and his or her first-year salary. And a business that owes back taxes to the IRS may find this credit useful.
The certification requirements can be met by filling out and sending Form 8850 to the state workforce agency within 28 days of the veteran’s date of hire. Businesses can claim the credit on their tax returns using forms 5584 and 3800. If you have questions, make sure to work with a tax professional.
Hiring veterans can not only be good for business, it can also be patriotic. Giving those who’ve served the country a chance to prove themselves in the marketplace can provide a fulfilling avenue for a veteran readjusting to civilian life.
Qualifying veterans are those with total periods of unemployment running at least 4 weeks but fewer than six months the year prior to the start date. Veterans with total periods of unemployment of six months or more the year prior to the start date also qualify.
For a business that owes back taxes to the IRS, getting compliant with its taxes and finances is also a good business move with a patriotic edge. Working with a tax professional or tax attorney doesn’t require a uniform, but it’ll help you get into Uncle Sam’s good graces.
Sign up for our newsletter and be the first to find out when exciting IRS news happens. Yes, exciting. We're really into taxes.