From the desk of our WOTC Certification Manager, and resident WOTC expert, Kay Thomason.

Under the VOW To Hire Heroes Act of 2011, the WOTC was expanded to allow tax exempt organizations to gain the WOTC tax credit for hiring veterans. The tax credit for non-profit organizations is up to $6,420 per veteran, depending on the length of the veteran's unemployment before hire, the number of hours worked and the veteran's first year wages. This addition applies to all veteran categories. 

The certification process is the same for non-profits, including the 28 day deadline for the Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit. Since the credit is processed separately from the company's tax return, the IRS will refund the amount of the tax credit. The credit can be used against the employer's share of social security tax. A non-profit organization should not reduce the amount of their tax return in anticipation of the tax credit.

If you are a tax exempt organization looking for eligible workers, contact your local Veteran Affairs office or call us and we will answer any questions you might have on this subject.