Memorial Day is a great time to think about our veterans and what we can do to show our thanks for all that they’ve done for our country. One way to show your thanks: hire a veteran. All too often, our men and women returning from active duty come home to a weak economy and limited job prospects. But, as an employer, you have the unique ability to help ease their transition to civilian life – by giving them a job and a chance.
Hiring a veteran can be good for the veteran, the community and your business. The VOW to Hire Heroes Act of 2011 provides work opportunity tax credits to businesses that hire certain veterans.
Credits are available to businesses that hire eligible veterans who begin work before January 1, 2013. Tax credits for hiring veterans fall into two categories: the returning heroes’ tax credit and the wounded warriors’ tax credit.
The Returning Heroes’ Tax Credit
The returning heroes’ tax credit is available to businesses that hire unemployed veterans. Businesses can qualify for a credit of up to $2,400 (calculated at 40 percent of wages, up to the first $6,000 in wages) for hiring a veteran who has been unemployed for more than four weeks.
Businesses that hire a veteran who has been unemployed for at least six months can claim up to $5,600 (calculated at 40 percent of wages, up to the first $14,000 in wages) in tax credits.
The Wounded Warriors’ Tax Credit
Greater tax credits are available for businesses that hire unemployed veterans who have service-connected disabilities. Under the wounded warriors’ tax credit, businesses can claim up to $4,800 (calculated at 40 percent of wages, up to the first $12,000 in wages) for hiring a veteran with a service-connected disability.
Businesses that hire a service-disabled veteran who has been unemployed for at least six months can qualify for a credit of up to $9,600 (calculated at 40 percent of wages, up to the first $24,000 in wages).
The Wounded Warrior Tax Credit isn’t just available to for-profit businesses – not-for-profit organizations can also claim it against their Social Security taxes.
Tax Credit for Hiring Low Income Veterans
Businesses can also receive a tax credit for hiring a veteran whose family member has been receiving benefits from a nutritional assistance program (food stamps). Employers that hire a veteran whose family has received benefits in the last twelve months can qualify for a credit of up to $2,400 (calculated at 40 percent of wages, up to the first $6,000 in wages).
Contact our Ohio tax experts
Are you interested in hiring a veteran? Want to learn more about one of the tax credits described above and how your business can qualify for it? Contact Rea & Associates. Our Ohio tax team will help you to make sure that you qualify for the credit and prepare the necessary tax forms. We’d love to help you help a veteran.