Often, the brave men and women who defend our country return to the workforce after their service. Veterans are typically organized and disciplined. Plus, they bring a unique set of talents and skills to the job that sets them aside from the rest. Veterans are known for being able to work well in a team environment and following instructions well to get the job done. In addition to being assets to your workforce, did you know that you can get tax credit for hiring veterans and help your business that way?
When a business hires a veteran, they can take advantage of the Work Opportunity Tax Credit (more commonly abbreviated as WOTC).
Tax Credit for Hiring Veterans
Currently, there are some incredible tax opportunities available for hiring veterans. For example, the Wounded Warriors Tax Credit is in place to double the already applicable Work Opportunity Tax Credit for veterans who have been unemployed long-term who have service-connected disabilities (tax credit up to $9,600). Additionally, there’s The Returning Heroes Tax Credit. Namely, it is in place to make hiring unemployed veterans even more attractive than it already is (tax credit up to $5,600).
There are various factors to consider in which employment situations qualify for a Work Opportunity Tax Credit related to a veteran. Here are some common situations in which there is eligibility.
Any veteran with a service-connected disability who is hired within a year of being released from active duty or discharged. This also goes for any disabled veteran who gets (or is entitled to) compensation to a service-connected disability that is unemployed for a minimum of six months out of a year before the date they are hired.
Veterans who were unemployed within a one-year period before their hire date for a minimum of four weeks (but less than six months) are also eligible. Additionally, if a veteran is a member of a household that is receiving Supplemental Nutrition Assistance Program (SNAP) assistance, they are eligible.
Other Considerations
There are other things to consider when looking at receiving tax credits for hiring veterans. For example, you might be able to qualify for the Qualified Long-term Unemployment tax credit in some cases if the person that you’re hiring is employed by you for a minimum of twenty-seven (27) weeks consecutively.
Additionally, if they work a minimum of one hundred and twenty (120) hours you can claim 25% of the wages from their first year of employment (up to $6,000). This would give you an income tax credit of $1,500.
Don’t Guess; Use Quentelle
As you can see, there are many opportunities for tax credits when hiring veterans. But, the specifics vary based on the WOTC eligibility criteria. When you hire a veteran, your company gains an asset. There’s no reason to miss out on the tax benefits as well.
Don’t guess at the specifics of the tax credits available — instead, use Quentelle — it’s smart and simple. Let’s schedule a demo today to see what tax credits you’re missing out on.