Work Opportunity Tax Credit
New Law Extends Tax Relief, Reinstates Estate & Gift Tax
Key Provisions of the Tax Relief Act of 2010 Incentives for Individuals Federal Estate & Gift Taxes Incentives for Businesses On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 , or H.R. 4853 (hereafter, “the Act”). The bipartisan legislation extends for two additional years many of the so-called “Bush-era tax cuts” originally enacted under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Key provisions of the new law extend the individual and capital gains/dividend tax cuts for all taxpayers through 2012, enact a payroll tax cut for 2011, provide a two-year AMT patch, establish a top estate tax rate of 35 percent with an exclusion of $5. Read More.
October 17th Deadline Approaches to Request Work Opportunity Tax Credit Certification for Some New Hires
Employers planning to claim the expanded Work Opportunity Tax Credit for eligible unemployed veterans and disconnected youth hired before mid-September have until October 17th to request the certification required for these workers. The IRS extended the certification from August 17, 2009 to October 17, 2009 with Notice 2009-69 , released in August, and clarified the definition of “disconnected youth.” Employers should use Revised Form 8850 to request certification from their state workforce agency. The American Recovery and Reinvestment Act of 2009 expanded the Work Opportunity Tax Credit to include two new targeted groups: (1) unemployed veterans; and (2) disconnected youth. Individuals qualify as unemployed veterans if they were discharged or released from active duty from. Read More.
IRS Reminds Businesses Hiring Unemployed Veterans and Disconnected Youth of August 17th Deadline
The IRS recently reminded businesses planning to claim the recently expanded Work Opportunity Tax Credit (WOTC) for unemployed veterans and disconnected youth hired during the first part of 2009 that they have until August 17, 2009 to use the newly revised Form 8850 to request the required certification from their state workforce agency. The WOTC offers tax savings to businesses that hire workers belonging to any of 12 targeted groups, including unemployed veterans and disconnected youth in accordance with the American Recovery and Reinvestment Act of 2009 . The IRS defines which individuals qualify as unemployed veterans and disconnected youth in Notice 2009-28 and the Instructions to Form 8850 . Businesses generally need to file Form 8850 with their state. Read More.