WOTC Questions: How Do I Claim a Credit for Hiring Veterans?

At CMS, as Work Opportunity Tax Credit “WOTC” subject matter experts and service providers since 1997, we receive a lot of questions via our website and through the webcasts we attend. This week’s WOTC Question comes from one of our recent webinars:

WOTC Questions: How Do I Claim a Credit for Hiring Veterans?

CMS says hiring a veteran can potentially make you eligible for a tax credit of up to $9,600. To qualify under the Veteran target group, the individual must first complete the 8850, and 9061 forms. If an individual identifies themselves as a veteran, our online system will ask for a copy of the veteran’s DD214 Discharge form. Forms must be submitted to the State Workforce Agency within 28 days of the hire date.

Veterans Target Groups
A new hire qualifies for a veterans target group, if the individual is:

  • A veteran who is a member of a family that received SNAP benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date;

OR

  • A disabled veteran entitled to compensation for a service-connected disability, who has been:
  • Hired within 1 year of discharge or release from active duty, OR
  • Unemployed for at least 6 months in the year ending on the hiring date;

OR

  • A veteran who has been unemployed for:
    • At least 4 weeks in the year ending on the hiring date; OR
    • At least 6 months in the year ending on the hiring date.

Please note that to have veteran’s status to be eligible for WOTC, an individual must:

  • Have served on active duty (not including training) in the U.S. Armed Forces for more than 180 days, OR have been discharged or released from active duty for a service-connected disability; AND
  • Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hiring date.

The State Workforce Agency will issue certifications if the individual qualifies.

Calculating the Credit

WOTC Veteran Target Group Calculating Credit

 

Related: WOTC Questions: Where to Post Jobs to attract veterans?

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