Wednesday, January 7, 2015

Federal Tax Credits for Hiring Veterans Extended through 2014

On December 19, 2014, President Obama announced a call to action to help veterans find jobs, the first step in a White House campaign to help veterans in the upcoming year. President Obama also signed into law the Tax Increase Prevention Act of 2014, a temporary extension of more than 50 tax breaks, most of which expired at the end of 2013.

Included in these extenders is an extension of the Work Opportunity Tax Credit (WOTC) tax credit, which expired on December 31, 2013. WOTC is now retroactively in place through 2014, for eligible veteran employees who began work before January 1, 2015.

WOTC contains provision for both the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit, which provide incentives of up to $5,600 for hiring qualified unemployed veterans, while the Wounded Warrior Tax Credit doubled the existing Work Opportunity Tax Credit for long-term unemployed veterans with service-connected disabilities to up to $9,600. Both credits expired at the beginning of last year. Find out more about tax credits for hiring veterans.

In October, the Department of Labor announced that the unemployment among veterans who have served since September 11, 2001 was ranked at 7.2 percent, while the national jobless rate stands at 5.8 percent. With 40,000 U.S. troops slated to return from Iraq by the end of the year, that number stands to rise.

“Bold action from Congress is ultimately the only way we’re going to put hundreds of thousands of Americans back to work,” Obama said. “Standing up for our veterans…is an American responsibility.”

Obama also announced new actions to help veterans find civilian employment, including a veterans’ job bank, debuted in April of last year by Michelle Obama under the name Veterans Employment Center, which offers veteran job seekers the chance to build their resume, translate military skills into private sector skills, and provide career and training content, and a veterans’ “Gold Card,” designed to offer veterans enhanced services and care at career centers.

PLEASE NOTE: Orion ICS, LLC, its affiliates and its employees are not in the business of providing tax or legal advice to any taxpayer. This content is for general information purposes only, and is not intended or written to be used without the advice of the taxpayer’s independent tax advisor. Thank you for reading about tax credits for hiring veterans.

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