Returning Heroes & Wounded Warriors

credit for hiring certain veterans

Veterans attempting to return to the work force after military service can face a number of obstacles. Having knowledge of the tax credits employers may be eligible when hiring a veteran, can be a powerful barganing chip when attempting salary negotiations.

On November 21st, 2011, culminating the effort President Obama began on August 5th at Navy Yard and advanced through the American Jobs Act, the President signed The Vow to Hire Heroes Act of 2011. This law combined provisions of the veterans' tax credits from the President's American Jobs Act, Chairman Murray's Hiring Heros Act, and Chairman Miller's Veterans Opportunity to Work Act into a comprehensive package that will aggressively attack the unacceptably high rate of unemployment.

  • Returning Heroes Tax Credit
  • a new hiring tax credit that incentives firms to hire unemployed veterans
  • Short-­‐term unemployed: A new credit of 40 percent of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been unemployed at least 4 weeks
  • Long-­‐term unemployed: A new credit of 40 percent of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been unemployed longer than 6 months

  • Wounded Warrior Tax Credit
  • Veterans with Services-Connected Disabilities:
  • Maintains the existing Work Opportunity Tax Credit for veterans with service-connected disabilities hired within one year of being discharged from the military. The credit is 40% of the first $12,000 of wages (up to $4,800)
  • Long-Term Unemployed Veterans with Services-Connected Disabilities:
  • A new credit of 40% of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities who have been in receipt of unemployment compensation for longer than 6 months. The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations

  • How Businesses Can Apply for These Credits
  • To collect on these credits, your company must do the following:
  • Complete IRS Form 8850 by the day the job offer is made
  • Complete ETA Form 9061 or complete ETA Form 9062 if the employee has been conditionally certified as belonging to a WOTC target group by a State Workforce Agency, Vocational Rehabilitation agency, or another participating agency
  • Submit the completed and signed IRS and ETA forms to your State Workforce Agency. Forms must be submitted within 28 calendar days of the employee's start date
  • Wait for a final determination from your State Workforce Agency. The determination will indicate whether the employee is certified as meeting the eligibility for one of the WOTC target groups
  • After the target group employee is certified by the State Workforce Agency, file for the tax credit with the Internal Revenue Service

You may contact the CareerSource Florida crown Business Services unit using the Contact Us form.


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