The president and congress have created a new tax credit aimed at hiring veterans.
The Details:
- A maximum $4,800 credit (40% of the first $12,000 in qualifying wages)for veterans with a service-related disability hired within 12 months of discharge (no change from prior law).
- A maximum credit of $9,600 (40% of the first $24,000 in qualifying wages) for veterans with a service-related disability who have been unemployed for at least six months of the prior 12 months.
- A maximum credit of $5,600 (40% of the first $14,000 in qualifying wages) for non-disabled veterans who have been out of work for at least six months out of the prior 12 months.
- A maximum credit of $2,400 (40% of the first $6,000 in qualifying wages) for veterans who have been unemployed at least four weeks, but less than six months, in the past year.
Be warned that you must file paperwork with state agencies before hiring this individual (or soon thereafter) to ensure they qualify. Just read up on the hoops you have to jump through if you potentially qualify.
Link for more info
Many people, especially small service based professionals, elect to be an S Corporation. An S Corporation can offer liability as well as tax advantages that make it the right choice.
The C Corporation is an entity that may be a better fit for some businesses, and
this article highlights some of the key reasons and pitfalls to consider when considering a C Corporation.
Disclaimer
The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
