Disconnected Youth Tax Credit
For the coming tax season, why not put some of the American Recovery and Reinvestment Act to work for you tax business. No, this is not a credit for your tax business hiring seasonal delinquents this tax season. The Disconnected Youth Tax Credit is a 25% credit for the first $6000 of earnings for employees that work at least 120 hours but less than 400 hours, or 40% for employees that work more than 400 hours.
To be a qualified employee, new hires must meet the following criteria
- Between ages of 16 and 24
- During the preceding 6 month period, has not attended a secondary, technical, or post secondary education for more than 10 hours per week.
- During the preceding 6 month period, has not been employed, or if employed has had earnings of less than the minimum wage times 30 hours per week.
- Either does not have a high school degree or GED, or has a degree that was awarded more than 6 months prior to the date of hire and has not been in school or working (other than occasionally) since graduating.
To access this credit, employers must complete IRS form 8850 and submit to your state workforce agency within 28 days from the date of hire.
The goal of this credit inclusion to the American Recovery and Reinvestment Act is to get under trained and unemployed youth into the workforce and get them new skills training to better their future. For more information on how to take advantage of this credit for your tax office this season feel free to give Federal Direct a call at (866) 357-2052 or see the article in Corporate Voices for complete program details.