Military spouses know employers are getting their money’s worth when they hire a spouse, but now the federal government may actually give employers a tax credit for giving spouses a job.
Senators Tim Kaine (D-VA), Jon Tester (D-MT) and John Boozman (R-AR), are expected to introduce the Jobs and Childcare for Military Families Act of 2018 next week. A key component of the bill would give businesses a tax credit for hiring military spouses, reports Military.com.
Currently employers can receive up to a $9,600 tax credit for hiring veterans. The amount is calculated based on the number of hours the veteran worked and the veteran’s disability rating from the Department of Veterans Affairs.
Military.com reports that the spouse credit would work in a similar fashion.
“The Jobs and Childcare for Military Families Act encourages businesses to step up and play a bigger role in hiring military spouses who already sacrifice so much,” Kaine said in a press release. “And it further addresses a real obstacle to professional success for many military families: access to quality, affordable child care. Addressing these issues will help military spouses advance in their careers despite frequent moves.”
Another component of the bill would give a pre-tax savings account to military families for child care expenses. The system is already used by many employers to help workers save pre-tax pay for child care costs by deducting money from the employee’s paycheck and placing it in a special account. Employees are reimbursed when they submit receipts for child care.