Were you aware that hiring a veteran can have a positive impact on your 2012 tax obligation? If you hire a veteran who begins work before January 1 of next year, you may be eligible for a credit as high as $9,600 if you are a for-profit employer and as high as $6,240 if you are a qualified tax-exempt organization. The VOW to Hire Heroes Act of 2011 expanded the categories of veterans who qualify and allowed not-for-profits to use the credit against the employer?s share of Social Security tax. Employers must certify that the veteran qualifies under Internal Revenue Service regulations by filing IRS Form 8850 (found at www.irs.gov) no more than 28 days after the veteran begins work.
The credit you receive would depend on numerous factors. Your CPA firm can explain the rules to you and help you ensure that you qualify for the credit, which will have a dollar-for-dollar impact on the tax you pay (or on your Social Security taxes if a not-for-profit).