Tax Credits Create Opportunities for Veterans to Work

gives employers a federal income tax credit for employing personnel

from specific target groups.

The specifically target groups have been identified as having a historically high unemployment rate by the federal government.

• Beneficiaries of federal assistance for example SSI and food stamps recipients.

• Veterans who have been unemployed or disabled.

• Residents of Federal Empowerment Zones.

The Demographics

These three demographics are more narrowly defined into 12 target groups based on specific

time periods for each qualification type.

Employers are entitled to WOTC credits for hiring veterans in three categories defined by the WOTC program.

America’s Best Tax Credit

Hire Our Returning Heroes and Wounded Warriors

Recently Discharged Veterans

• Disabled veterans entitled to compensation for a service‐connected disability are qualified hired within one year of discharge or release from active duty. Disabled veterans unemployed for at least 6 months are also qualified.

• Veterans who are members of a family that received food stamps for at least 3‐months.

Vow to Hire Heroes Act was signed in November 2011.

Vow to Hire Heroes Act defines types of unemployed veterans: • Disabled veterans that are

unemployed for at least 6 months. • Veterans unemployed at least 4 weeks

qualify their new employers for a WOTC credit.

• A generous $5,600 tax credit is provided for hiring veterans who have been unemployed and available for work for six months or more.

In 2013 the American Tax Payer Relief Act merged the Vow to Hire Heroes legislation with the WOTC program

and extended eligibility.

Nonprofits Vow to Hire Heroes

• The Tax Credit is for the employer portion of FICA, not Medicare, up to the wage limits for each type of credit claimed.

• The qualifying groups are the same as mentioned under “Veteran Credits”.

• Claiming the nonprofit payroll tax credit needs a different set of forms than the for-profit WOTC tax credit.

• They are a highly skilled tech savvy workforce.

• Have extensive leadership training.

• There is no limit to the level of payroll tax credit you can claim from hiring qualified veterans.

Why should nonprofits hire veterans?

Contact Us Today!

WWW.MCKENZIECHASE.COM | 206. 547.8277 | INFO@MCKENZIECHASE.COM

REMEMBER WE OFFER A COMPLIMENTARY EXPERT TAX CREDIT REVIEW!