Don't Forget the New Veterans' Tax Credit!
Dec 05, 2011
A new tax credit for farms that hire unemployed veterans is in effect now that President Obama has signed the legislation officially eliminating the 3% withholding on government contractors that was scheduled to begin in 2013. I think I have seen more laws get initiated and eliminated in the last three years than I saw in my first 20 years of being a CPA.
The credit amount varies with how long the veterans have been unemployed. It's 40% of the first $14,000 of wages for vets ($24,000 if disabled) who have been jobless for six months or more in the year before they were hired, and 40% of the first $6,000 of wages for vets who've been out of work at least four weeks but less than six months.
The credit applies for eligible veterans starting work after Nov. 21, 2011, and before Jan. 1, 2013.
Forty percent of $14,000 is $5,600, which can be a good-sized credit, plus we are helping get those veterans back to work after serving our country. This can be a win/win for both the farmer and the veteran.