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Week of June 5, 2009 • Issue No. 041
This Week in the iNews:
▲ CREDITS FOR HIRING UNEMPLOYED VETERANS AND DISCONNECTED YOUTH
▲ PRESIDENT OBAMA PURPOSES TAX REFORM – FROM THE DESK OF JOHN MACK
▲ Credits for Hiring Unemployed Veterans and Disconnected Youth
Section 51 of the Internal Revenue Code provides for a Work Opportunity Tax Credit (WOTC) for employers who hire individuals who are members of targeted groups. Section 1221 of the American Recovery and Reinvestment Tax Act of 2009 (ARRTA), enacted February 17, 2009, amended § 51 to add two new targeted groups for purposes of the WOTC. The new section provides that unemployed veterans and disconnected youth who begin work for an employer during 2009 or 2010 shall be treated as members of a targeted group for purposes of the WOTC.
A new IRS notice sets forth the statutory definitions of “unemployed veteran” and “disconnected youth,” and provides guidance on the definition of “disconnected youth.” It also provides transition relief for employers who hire unemployed veterans or disconnected youth after December 31, 2008, and before July 17, 2009.
Please contact your Prangley Marks professional if you would like more information regarding these tax credits.
▲ President Obama Proposes Tax Reform, from the Desk of John Mack
President Obama Proposes Tax Reform, Including:
- Corporate owned Life Insurance
- An increase in top tax rate on capital gains and dividends to 20% for two top marginal tax rates.
- Cutbacks on itemized deductions and exemptions for top two marginal brackets.
- Cap at 28% on which itemized deductions cut tax liability.
- Payroll tax credit capped at $400 for singles and $800 for married filers.
- Expanded credit for college expenses.
- More 1099 reporting.