Hire a Veteran and Get a Tax Credit
As we honor our veteran’s this Veteran’s Day, consider hiring a qualified veteran and get a tax credit! In 2015 the PATH Act was passed which allows a business credit for employers who hire workers in certain targeted groups, including veterans. If you hire a qualified veteran you can receive a tax credit on your income tax or your social security tax.
A qualified veteran is a veteran who is any of the following:
- A member of a family receiving assistance under the SNAP (food stamps) program.
- Unemployed for at least 4 weeks but less than six months in the one-year period prior to hiring.
- Unemployed for at least 6 months in the one-year period ending on the date of hire.
- Entitled to compensation for a service-connected disability and hired within the first year after being discharged or released from active duty.
- Entitled to compensation for a service-connected disability and unemployed for a period totaling at least 6 months in the one-year period ending on the date of hire.
In order to claim the credit, you must first file a form 8850 Pre-Screening form with the Indiana Department of Workforce Development. This form must be filed before the employee begins working for you. Additionally, you will need to file a Form 9062 or 9061. You can get these forms and more information for getting pre-certified at http://www.doleta.gov/business/Incentives/opptax.
Once your employee is pre-certified you can claim the credit on your federal income tax return on Form 5884 and Form 3800. Depending on the qualification of the veteran you hire, you can get a tax credit from $6,000 up to $24,000.
If you hire a qualified employee and obtain the proper pre-screening approval, let your CPA know so we can claim this credit for you on your income tax return. If you have any questions give us a call at SBS CPA Group!