At CMS, as Work Opportunity Tax Credit (WOTC) experts and service providers since 1997, we receive a lot of questions via our website’s chat box:
CMS Says: Yes, there are benefits to hiring veterans. Firstly, to be considered a veteran, the applicant must:
- Have served on active duty (not including training) in the Armed Forces of the United States for a period of more than 180 days, or have 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.
A Qualified veteran is any of the following:
- A member of a family that has received Supplemental Nutrition Assistance Program (SNAP) benefits (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date.
- Unemployed for a period or periods 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 a period or periods 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 is hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces.
- Entitled to compensation for a service connected disability and was unemployed for a period or periods totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
Tax Credit Values For Hiring Qualified Veterans:
- Receives SNAP (Food Stamps) Benefits
- Worked at least 120 hours but less than 400 hours Up to $1,500 (25% of $6,000 of first-year wages)
- Worked at least 400 hours Up to $2,400 (40% of $6,000 of first-year wages)
Entitled to compensation for service-connected disability:
- Hired 1 year after leaving service
- Worked at least 120 hours but less than 400 hours Up to $3,000 (25% of $12,000 of first-year wages)
- Worked at least 400 hours Up to $4,800 (40% of $12,000 of first-year wages)
- Unemployed at least 6 months
- Worked at least 120 hours but less than 400 hours Up to $6,000 (25% of $24,000 of first-year wages)
- Worked at least 400 hours Up to $9,600 (40% of $24,000 of first-year wages)
Unemployed:
- At least 4 weeks
- Worked at least 120 hours but less than 400 hours Up to $1,500 (25% of $6,000 of first-year wages)
- Worked at least 400 hours Up to $ 2,400 (40% of $6,000 of first-year wages)
- At least 6 months
- Worked at least 120 hours but less than 400 hours Up to $ 3,500 (25% of $14,000 of first-year wages)
- Worked at least 400 hours Up to $5,600 (40% of $14,000 of first-year wages)
Note: Qualified tax-exempt organizations described in IRC Section 501(c) and exempt from taxation under IRC Section 501(a), may claim the credit for qualified veterans only who begin work on or after December 31, 2014, and before January 1, 2020.
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