Stewart Tax Resources, Inc. salutes all veterans today! With the news that the war is technically over and the soldiers are going to begin returning home, one thing that is troubling everyone from government to the veterans’ families is “How are they going to find a job?“
Perhaps you are a small business owner or hiring manager who is asking yourself, “How am I going to lower my tax bill this tax season?“
Well, the current Administration is attempting a solution to both questions with the introduction of the Returning Heroes and Wounded Warrior Tax Credits. These tax credits, new for the 2012 tax season encourage the hiring of our U.S. Veterans by creating a tax incentive for businesses. The information below outlines some of the details of the tax credit. Look to the White House’s website for full details.
“Returning Heroes and Wounded Warrior Tax Credits
Under the Recovery Act, employers who hired certain unemployed veterans were eligible for a tax credit of up to 40 percent of the first $6,000 of wages, for a maximum credit of $2,400. This credit expired at the end of 2010.
The President will call for two new tax credits:
The Returning Heroes Tax Credit is a new hiring tax credit that will provide an incentive for firms to hire unemployed veterans.
Perhaps, you are a business owner and are wondering “how can I pay less taxes this tax season?” Well, as someone who hiring, you can help by hiring from this new supply of willing workers, and aiding in their adjustment to civilian life.
There are a couple new credits that the Obama Administration has introduced credits for those coming home.
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 $12,000 of wages (up to $4,800) for employers who hire veterans who have been unemployed longer than 6 months.
The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities.
Maintain the existing Work Opportunity Tax Credit for veterans with service-connected disabilities (currently the maximum is $4,800).
A new credit of 40 percent of the first $24,000 of wages (up to $9,600) for firms that hire veterans with service-connected disabilities who have been unemployed longer than 6 months.
The paperwork process for claiming these credits will be simplified by streamlining the burdensome certification that firms had to undertake to claim previous credits.”