On Dec. 19, the President signed the Tax Increase Prevention Act into law. The act extends more than 50 tax breaks – but only through December 31, 2014. One of the extenders is the Work Opportunity Credit.
This credit is available for hiring from certain groups, such as food stamp recipients, ex-felons and veterans who’ve been unemployed for four weeks or more. The credit for these groups generally equals 40% of the first $6,000 of wages for a maximum credit of $2,400 per qualifying employee. But larger credits – with maximums ranging from $4,800 to $9,600 – are available for hiring disabled veterans and veterans who’ve been unemployed for six months or more.
It is possible that you hired an eligible employee during 2014 and now qualify for the credit.