IAJ Welcomes You Recent Legal Releases:
Veteran awarded $118,000 settlement
A returning Iraq War Veteran was awarded a $118,000
settlement agreement versus Ecolab, Inc. for a violation of a Uniformed
Services Employment and Reemployment Rights Act (USERRA) complaint
investigated by the U.S. Department of Labor's (DOL) Veterans' Employment
and Training Service (VETS).
Ecolab violated the USERRA by failing to promptly re-employing a Veteran
upon his return from military service. A Veteran’s rights under the USERRA
can be found at
www.dol.gov/vets.
Question: Do Veterans need to report Veterans Benefits as
part of their 2008 Income?
If there is any area of the law that changes more often than not, it is tax
law. However, as a general rule, Veteran Benefits are non-taxable.
Examples of other non taxable benefits include but are not limited to
education benefits under the GI Bill, certain allowances, disability
compensation, pension payments, certain grants, and Veteran's Insurance
proceeds.
Because income tax can be a very complicated issue, I advise all of my
clients regardless of their military status to seek guidance from a
Certified Public Accountant (CPA). Not only are CPA fees a valid tax
deduction, the right CPA can offer invaluable advice.
Therefore, please seek advisement from a CPA and have confidence that your
Veterans Benefits will be a non-taxable event for the year 2008.
Part II: American Recovery and Reinvestment Act
Program:
Incentives to Hire Unemployed Veterans and Disconnected
Youth.
Under current law, businesses are allowed to claim a work opportunity tax
credit equal to 40 percent of the first $6,000 of wages paid to employees of
one of nine targeted groups; families receiving Temporary Assistance to
Needy Families, certain veterans receiving food stamps or disability
compensation, certain ex-felons, residents of designated communities,
individuals in vocational rehabilitation, certain youths employed during the
summer, certain food stamp recipients, certain recipients of SSI, and
long-term recipients of family assistance. The bill creates two new targeted
groups of prospective employees: unemployed veterans and disconnected youth.
An individual would qualify as an unemployed veteran if they were discharged
or released from active duty from the Armed Forces during the five-year
period prior to hiring and received unemployment compensation for more than
four weeks during the year before being hired.
An individual qualifies as a disconnected youth if they are between the ages
of 16 and 25 and have not been regularly employed or attended school in the
past 6 months. This proposal is estimated to cost $231 million over 10
years.
How to Apply:
The participating business will receive the work opportunity tax credit when
taxes are filed with the IRS. Visit www.irs.gov or
http://www.irs.gov/pub/irs-pdf/p954.pdf.
American Recovery and Reinvestment Act
Program: Economic Recovery Payment to Recipients of Social
Security, SSI, Railroad Retirement and Veterans Disability Compensation
Benefits
This provision would provide a one-time payment of $250 to retirees,
disabled individuals and SSI recipients receiving benefits from the Social
Security Administration, Railroad Retirement beneficiaries, and disabled
veterans receiving benefits from the U.S. Department of Veterans Affairs.
The one-time payment is a reduction to any allowable Making Work Pay
credit.
How to Apply:
For more information, please visit www.irs.gov or
www.treasury.gov.
Program:
Refundable Credit for Certain Federal and State Pensioners The bill would
provide a one- time refundable tax credit of $250 in 2009 to certain
government retirees who are not eligible for Social Security benefits. This
one-time credit is a reduction to any allowable Making Work Pay
credit.