A nonrefundable credit is available to taxpayers who hire a qualified, recently deployed veteran.
A qualified, recently deployed veteran is a person who was mobilized to active federal military service in an active or reserve component of the United States Armed Forces, and received an honorable or general discharge within the two-year period before the employment begins.
To qualify for the credit, the qualified veteran must meet all of the following conditions:
- received an honorable or general discharge within the two-year period before the employment begins;
- was collecting or was eligible to collect unemployment benefits, or has exhausted their unemployment benefits within the last two years, under UC Title 35A, Chapter 4, Part 4, Benefits and Eligibility; and
- work for the taxpayer for at least 35 hours per week for not less than 45 of the 52 weeks following the veteran’s employment start date.
The credit is claimed beginning in the year the 45 consecutive weeks in paragraph 3 above are met.
Calculate the credit as follows:
|Calculating the Veteran Employment Tax Credit|
|First Year Credit (count all months in the year the 45 week requirement is met)|
|1. Number of months or partial months the veteran was employed in the first year|
|2. Monthly credit allowable in first year||$ 200|
|3. First year credit – multiply line 1 by line 2 (maximum $2,400)||$|
|Second Year Credit|
|4. Number of months or partial months the veteran was employed in the 2nd year|
|5. Monthly credit allowable in second year||$ 400|
|6. Second year credit – multiply line 4 by line 5 (maximum ($4,800)||$|
We will not refund any credit greater than your tax due, but you may carry it forward to offset tax for up to five years. If taking this credit, you must keep the following documentation and make it available to the Tax Commission upon request:
- the veteran’s name, last known address, and taxpayer identification or Social Security number;
- the start date of employment;
- documentation establishing that the veteran was employed 45 out of the 52 weeks after the date of employment;
- documentation from the veteran’s military service unit showing that the veteran was recently deployed; and
- a signed statement from the Department of Workforce Services that the veteran was collecting, was eligible to collect, or exhausted their unemployment benefits within the last two years.