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Hire a veteran by December 31 for a big tax credit

While many tax credits are complex, if you hire a veteran by the end of the year and you run a for-profit company, the tax credit is $9,600, and is very straight forward, making it quite appealing to employers.

veterans
Chief petty officers stand at attention after receiving their anchors and chief petty officer combination covers during a chief petty officer pinning ceremony at Naval Base Coronado. U.S. Navy photo by Mass Communication Specialist 2nd Class Dominique Pineiro.

hire a veteran

Chief petty officers stand at attention after receiving their anchors and chief petty officer combination covers during a chief petty officer pinning ceremony at Naval Base Coronado. U.S. Navy photo by Mass Communication Specialist 2nd Class Dominique Pineiro.

Hire a veteran for a strong candidate AND a tax credit

As we inch closer and closer to the edge of the financial cliff, many companies are taking a hard look at their budgets and projects they have planned for the rest of the fiscal year to see how potential tax hikes could affect future profitability.

With so many credits going out of the window, financial advisers are urging businesses to take advantage of as many credits as possible before they expire at the end of the year. There’s still time left for businesses, especially small business owners, to receive one in particular, the veteran’s credit, which rewards companies for hiring and adding veterans into the payroll.

Businesses have until December 31 to hire a veteran and prove that the company qualifies for the Expanded Tax Credit. Interested businesses should fill out federal form 8850, known as the Pre-Screening Notice and Certification Request for Work Opportunity.

Relatively straight forward credit

Depending on how long the veteran has been unemployed, the hiring company can receive a maximum of $6,240 (if a tax exempt company) or $9,600 (if for-profit) per worker. Other specifications are factored in as well, such as how many hours this person works for your company and their wage amount.

The credit benefits both sides as veterans receive a sense of self-fulfillment pursuing a venture they’re passionate about, and companies are rewarded for hiring people who have served our country. And the requirements for receiving this credit are relatively simple to implement when compared to specifications for other credits.

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If you’re looking to make additions to your work force or could benefit from having a senior staff member with a long-ranging work history or strong values and work ethic, then hiring a veteran gives allows your company to add on a staff member that fits your mission and receive benefits for doing so. There are still 12 days left in the year, so review your goals for 2013 and decide if this credit that is plausible and would work well for your business.

Destiny Bennett is a journalist who has earned double communications' degrees in Journalism and Public Relations, as well as a certification in Business from The University of Texas at Austin. She has written stories for AustinWoman Magazine as well as various University of Texas publications and enjoys the art of telling a story. Her interests include finance, technology, social media...and watching HGTV religiously.

2 Comments

2 Comments

  1. Joe Loomer

    December 20, 2012 at 10:35 am

    Outstanding!  Shame its expiring.  Oh and if anyone wants to hire me to be their agent, I’m a vet!  😉
     
    Navy Chief, Navy Pride

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