Don’t Forget The New Veteran’s Credit
A new tax credit for farms that hire unemployed veterans is in effect now the President Obama has signed the legislation officially eliminating the 3% withholding on government contractors that was scheduled to begin in 2013. I think I have seen more laws get initiated and eliminated in the last 3 years than I ever saw in my first 20 years of being a CPA.
The credit amount varies with how long the veterans have been unemployed. It’s 40% of the first $14,000 of wages for vets ($24,000 if disabled) who have been jobless for six months or more in the year before they were hired, and 40% of the first $6,000 of wages for vets who’ve been out of work at least four weeks but less than six months.
The credit applies for eligible veterans starting work after November 21, 2011 and before January 1, 2013.
40% of $14,000 is $5,600 which can be a good size credit plus we are helping get those veterans back to work after serving our country. This can be a win/win for both the farmer and the veteran.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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