Employers Have Until End of 2013 to Take Advantage of Veteran Tax Credits

Employers have until the end of 2013 to take advantage of tax credits for hiring qualified veterans.

The Work Opportunity Tax Credit (WOTC) is a tax credit offered private sector employers who hire individuals from certain targeted groups. These tax credits may range from between $1,200 and $9,600 per employee, depending on the target group of the new employee and the number of hours worked in the first year.

Although some categories of the WOTC expired in 2012, the American Taxpayer Relief Act of 2012 (ATRA) extended the WOTC for hiring certain workers through December 31, 2013. ATRA extended the WOTC for qualified veterans hired before Jan. 1, 2014, as well as several other targeted groups, including some recipients of government assistance.

All employers must obtain certification that an individual is a member of a targeted group before the employer may claim the WOTC. The process for certifying the veterans for this credit is the same for all employers.