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Hire Heroes and Reduce Your Taxes!


There are nearly one million unemployed veterans in the United States today. This number continues to grow as Iraq and Afghanistan veterans come home from overseas. On November 21, 2011, the President signed into law the VOW to Hire Heroes Act of 2011. This is an expansion on the Veterans Opportunity to Work Act of 2011. This new law expands the work opportunity tax credits to companies that hire eligible unemployed veterans.

Do you want to reduce your taxes while hiring those who have served in the armed forces to protect the United States? Read on…

You can claim a credit against taxes owed of as much as $5,600 per qualified veteran and as much as $9,600 per qualified veteran with service-connected disabilities. The credit is available to companies whose veteran employees began work after November 22, 2011 and before January 1, 2013. The amount of the credit is dependent on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works and the veteran’s first-year wages. Companies claim the credit as part of the general business credit on their federal tax return, a dollar for dollar reduction of tax liability.

In order to qualify for the credit, you must show certification that the veteran is a member of the targeted group. Certification can be obtained by submitting Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, to your respective state workforce agency. Additionally, you should check with each state agency to determine if other forms need to be filed for certification purposes.

IMPORTANT – The filing process is time sensitive! In order to qualify for this credit you must file for employee certification within 28 days after the eligible worker’s first day of work.