The Internal Revenue Service released Notice 2012-13 on Feb. 9 saying that it will allow businesses hiring eligible unemployed veterans additional time to apply for certification for tax credits. Employers who hire qualified veterans between Nov. 22, 2011, and May 22 are eligible to claim the Returning Heroes and Wounded Warriors Work Opportunity Tax Credits if they submit certification forms by June 19. Typically, employers must submit the required certification form, Form 8850, to the designated local agency no later than 28 days after the individual begins working.
The tax credits were enacted as a part of the VOW to Hire Heroes Act. The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations. The amount of the credit varies based on the category of qualified veteran.
Qualified tax exempt organizations also can claim the credit against the employer’s share of Social Security tax using Form 5884-C. The form should be filed separately and after the organization has filed its employment tax returns for the time period in which the credit is claimed. The IRS will refund the amount claimed.
The IRS statement accompanying the notice with links to instructions and forms is available here.