Expanded tax credit for employers hiring veterans by year’s end 

November 7: The IRS today issued a “special edition tax tip” to remind employers planning to claim an expanded tax credit for hiring certain veterans of the need to act soon, to be eligible for the Work Opportunity Tax Credit (WOTC) for newly hired veterans beginning work before 2013.

Read the IRS special edition tax tip: 2012-14 [PDF 29 KB]


The IRS release briefly outlines six facts about the WOTC as expanded by the VOW to Hire Heroes Act of 2011.


  • Hiring deadline - Employers may be able to claim the expanded WOTC for qualified veterans who begin work on or after November 22, 2011, but before January 1, 2013.
  • Maximum credit - The maximum tax credit is $9,600 per worker for employers that operate for-profit businesses, or $6,240 per worker for tax-exempt organizations.
  • Credit factors - The amount of credit will depend on a number of factors, including the length of the veteran’s unemployment before being hired, the number of hours the veteran works, and the amount of the wages that the veteran receives during the first year of employment.
  • Disabled veterans - Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
  • State certification - Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency, within 28 days after the qualified veteran starts work.
  • E-file - Some states accept Form 8850 electronically.

Additional resources




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©2012 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.


The KPMG logo and name are trademarks of KPMG International.


KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.


The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


Direct comments, including requests for subscriptions, to us-kpmgwnt@kpmg.com.
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.

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