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For Small Business Week, IRS Spotlights Expanded Tax Credit for Hiring Veterans (05/24/12) C. Zawadi Morris

As part of Small Business Week, May 20-26, the U.S. Internal Revenue Service hopes small-business owners will take advantage of an expanded Work Opportunity Tax Credit for hiring eligible unemployed veterans, with companies that hire veterans with service-related disabilities possibly qualifying for the maximum credit. The amount of the credit is based on how long the veteran was unemployed, how many hours the veteran worked, and the wages the veteran earned during the first year, with a maximum credit of $9,600 per veteran for for-profit employers and $6,240 for tax-exempt organizations. Employers typically have 28 days from when eligible workers start their jobs to file Form 8850 with the state work force agency, but a special rule gives them until June 19 to do so for veterans hired between Nov. 22, 2011, and May 22, 2012.