I have a client who has a cleaning business, files Sch C. In past he has issued several 1099-MISC to people who worked for him. This year he says he has some employees and wants to know about a credit for hiring disabled veterans. Is anyone familiar with this credit as I am not.
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He might have been referring to the Work Opportunity Credit, but I don't think it was renewed for 2015.Originally posted by Bonnie View Post -
Work opportunity credit
1. W.O.C. extended through 2019.
2. SEE TTB summary (12-23-15), page 17.
3. Coverage of the credit is also at P. 30-13 (right column, starts bottom of page, then to P. 30-14) of TTB Small Business Edition (sadly didn't find in Deluxe Edition).
4. WOC Applies to qualified Veterans.
5. Employee must be certified by state employment security agency.Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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Not on 1040
Bonnie, you won't see this on Form 1040. What you will see in the "credits" section is Form 3800 "General Business Credits".
The Forms that are accessed through Form 3800 are many, maybe a couple dozen. One of these forms is the Work Opportunity Credit, Form 5884. When you work through the WOC calculation, it will result in a credit, which can then be take on Form 3800.
The usage is not that common, because the employees must first be pre-ordained by the state. It will thus not suffice to hire druggies, ex-cons, disability, chronically unemployed, etc. without them having a number assigned to them.
Interesting about you client -- sounds like in previous years he wanted to avoid payroll taxes, All of a sudden, he now wants employees when the credit is substantial.Comment
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That's not the case in the issue of 1099's in past and now employees. In past he had various offices and businesses they cleaned and issued 1099's to people who worked for him. In 2015 for the first time, he had a contract with a hospital and because of the way that was set up he then had to treat those people as employees and do payroll. Other contracts he has he still issues 1099's to those people who work for him. Thanks for all the help with how to handle this. Client has appointment Sat so I will see if he really qualifies for the credit. He asked ahead of time about it so I was trying to research the issue. Not sure my client knows he needs preapproval of the employee to get the credit. Think it's just one person who might possibly qualifyComment
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