Tax Credits For Veterans & Other IRS News
TAX PLANNING ALL YEAR
- Stay on top of your taxes all year long with Publication 3, Armed Forces’ Tax Guide
- Publication 3, Armed Forces’ Tax Guide, covers the special tax situations of active members of the U.S. Armed Forces.
- YouTube Video (less than 2 minutes): https://youtu.be/SRYppoVk9zM
HAVE YOU SEEN THIS?
- The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers of all sizes for hiring and employing a qualified veteran who have faced significant barriers to employment. This includes both taxable and certain tax-exempt employers located in the United States and in certain U.S. territories. While taxable employers claim the WOTC against income taxes, eligible tax-exempt employers can claim the WOTC only against payroll taxes.
- Up to $24,000 in wages may be taken into account in determining the WOTC for certain qualified veterans.
- A “qualified veteran” is a veteran who is any of the following:
- A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date
- Unemployed for periods of time totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date
- Unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date
- Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces or
- Entitled to compensation for a service-connected disability and unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date
- See our September Tax Tip for information when hiring veterans: Help wanted? Businesses that are hiring should know about the work opportunity tax credit
DID YOU KNOW?
- The Internal Revenue Service have a military page on IRS.gov? Connect here: Military | Internal Revenue Service (irs.gov)
- IRS Free File remains open until November 17th for those, including the military, who still need to file their 2021 tax returns. This includes those who qualify for the Child Tax Credit, Recovery Rebate Credit or Earned Income Tax Credit but haven’t yet filed a 2021 tax return to claim them.
- Use Free File: Do your Federal Taxes for Free | Internal Revenue Service (irs.gov)
Questions? Contact ATS