Tax credits must be filed by June 29
The deadline to file for lucrative tax credits for veterans hired January 1, 2015 – May 31, 2016, is June 29, 2016.
The forms must be filed within 28 days for those hired after May 31, 2016.
Knowing what tax credits are available for employers who hire veterans are another way veterans can market themselves as job candidates.
“The wounded warrior tax credit is of particular value to anyone who hires disabled veterans,” said DAV National Employment Director Jeff Hall. “This can potentially be worth $9,600 for every eligible veteran hired.”
Hall said a business can gain up to $4,800 in tax credit for hiring a veteran with a service-connected disability if the veteran is hired within one year after being discharged from the armed forces.
“This is doubled to $9,600 if the employer hires a service-connected disabled veteran who has been receiving unemployment insurance for longer than six months,” Hall said.
Another work opportunity tax credit was expanded in December to businesses who hire any unemployed veterans. Businesses who hired eligible veterans from December 2014 are able to retroactively apply for the credit. The program is scheduled to be in effect through 2019.
The tax credit for hiring any unemployed veterans can be worth up to $5,600 to employers.
“The returning heroes tax credit is divided into two parts,” said Hall. “The first credit, which can be worth up to $2,400 to an employer, is for businesses that hire veterans who have received unemployment compensation for at least four weeks or who have received assistance from a supplemental nutrition program for at least three months.
“The other part is for businesses who hire veterans that have been receiving unemployment insurance for longer than six months for the one-year period ending on the veteran’s hiring date.”
Hall said the six-month period did not need to be consecutive.
An update to the differential wage payment credit is pertinent to businesses who hire National Guard members or members of the Reserves.
“Previously, this tax credit was only available to qualifying small businesses,” Hall said. “But now it’s available for up to $4,000 to all employers who pay National Guard and Reserve employees while they’re on active orders for more than 30 days and have been with the company for at least three months.”
These credits are tools veterans can use to find employment opportunities.
“All veterans should be aware of these incentives to employers and be prepared to discuss them with hiring specialists,” said DAV National Headquarters Executive Director Barry Jesinoski. “In addition to the very desirable skills veterans already bring to the workforce these tax credits can give veterans a competitive edge in the job search.”
The forms for obtaining these tax credits are available at https://www.irs.gov/Forms-&-Pubs.