TAX CREDIT- Do you took advantage of this Tax Credit?

Expanded Work Opportunity Tax Credit- Available for Hiring Qualified Veterans:

The VOW to Hire Heroes Act of 2011 added two new categories to the existing qualified veteran targeted group and made the WOTC available to certain tax-exempt employers as a credit against the employer’s share of social security tax.

DUE DATE:

The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013.

AMOUNT OF CREDIT:

As high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations.  The credit will also depend on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. However, the amount of the credit for qualified tax-exempt organizations may not exceed the organization’s employer social security tax for the period for which the credit is claimed.

PRE-SCREENING AND CERTIFICATION

All employers must obtain certification that an individual is a member of the targeted group, before the employer may claim the credit.

FORM TO FILE

An eligible employer must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency within 28 days after the eligible worker begins work.

The Form due date was June 19, 2012, for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.

SOURCE: http://www.irs.gov

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