The IRS may have some useful tax credits for you if you hire members of certain targeted groups.
The work opportunity credit has been extended to cover members of targeted groups who begin work for you before September 1, 2011. For tax years beginning after December 31, 2006, there is no longer an alternative minimum tax limitation with respect to this credit. For more information about this credit, see Form 5884, Work Opportunity Credit.
Members of targeted groups.
For individuals who begin work for you after May 25, 2007:
- The qualified veterans group is expanded to include veterans entitled to compensation for a service-connected disability and who, during the one-year period ending on the hiring date, were (a) discharged or released from active duty in the U.S. Armed Forces or (b) unemployed for a period or periods totaling at least 6 months. The first-year wages taken into account for these disabled veterans is $12,000.
- The high-risk youth group has been renamed “designated community residents” and expanded to include individuals who are at least age 18 but not yet age 40. In addition, residents of rural renewal counties have been added to this group.
For more information, see Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, and its Instructions.
For tax years beginning after 2006, the work opportunity credit is allowed against both the regular tax and the alternative minimum tax.
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Glenna Mae Hendricks. She is an entrepreneur and income tax consultant, so we get lots of good tax tips from her. She is an oenophile (“look that up in your Funk and Wagnall’s,” she says), and a wine enjoyment teacher/guide who also writes wine notes at the Allen’s Retail Liquors site. Her political thoughts (and occasional outbursts of domesticity) appear at Old Feminist and Wild-eyed Liberal.