Vancouver — Employers who hire veterans before the end of the year may be able to claim the federal Work Opportunity Tax Credit worth thousands of dollars, the Internal Revenue says.
The tax credit will expire at the end of this year.
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. The credit amount is based on a number of factors including the length of time a veteran was unemployed, the number of hours worked, and the amount of the wages paid during the first year of employment. Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
Employers must obtain state certification by filing Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency within 28 days after the qualified veteran starts work. For more information, visit the U.S. Department of Labor’s WOTC website.
For more about the Work Opportunity Tax Credit, visit IRS.gov and enter “WOTC” in the search box.