Tax Credits Expand for Businesses Hiring Unemployed Veterans and Certain Youth

The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and “disconnected youth” to the list of targeted groups covered by the work opportunity tax credit (WOTC). The other targeted groups that could get you the tax credit include people, aged 18 to 39, who live in certain designated communities in 43 states and the District of Columbia; workers displaced by Hurricane Katrina; recipients of various types of public assistance; and certain veterans, summer youth workers and ex-convicts. The instructions for Form 8850 will give you the details and requirements for each of these groups.  In general, an unemployed veteran is a person who was discharged or released from the military during the five year period preceding the hiring date, and who received unemployment benefits for at least four weeks during the one-year period en... [Read Full Article]