Research Tax Credit Detailed Estimator

The estimated tax credit is {{ get_higher_credit_amount() | currency : USD : 0 }}.

This calculator is only a demo and does not constitute legal tax advice. It is purely designed to provide an idea of how large a Research Tax Credit a company could receive, based on Qualified Research Expenses and Gross Receipts. This calculator does not help determine Qualified Research Expenses or Gross Receipts.



What are the company's R&D expenses for this year?

What tax year is the company applying for?

What wages did the company pay for Qualified Research Expenses? Count total W-2 wages (hourly wages, salary, bonus, etc.), but do not include benefits or employer FICA taxes.

employee, earning   employees, earning
$
annually, who spends annually, who spend  
of her/his time on developing new products or features. of their time on developing new products or features.    
  Cost: {{ employee_rows[$index].number_of_employees * employee_rows[$index].employee_salary * employee_rows[$index].percent_devoted_to_rnd | currency : USD : 0 }}

Total wages = {{ get_total_wage_cost() | currency : USD : 0 }}

$
$
$

Were any of these contract research expenses:

There are special deductions for payments to energy research consortia, but they're complicated; this calculator does not cover those.

There are special deductions for research payments to these organizations, but they're complicated; this calculator does not cover those.

The company's total Qualified Research Expenses for this year are {{ total_QREs() | currency : USD : 0 }}.


What are the company's past R&D expenses?

In the tax years beginning after 1983 and before 1989:

In how many years has the company had Qualified Research Expenses? (Only count years beginning after 1993.)

In the last three (3) years that the company had qualified research expenses:

In the last four (4) years that the company had qualified research expenses:

In the last five (5) years that the company had qualified research expenses:

Choose any five (5) of the 5th through 10th years since 1993 in which the company had qualified research expenses (i.e., of those 6 years, you can exclude one). In those five years:


What are the company's average annual gross receipts?


The company's research credit is:

You could claim the Regular Credit for {{ calculate_regular_credit() | currency : USD : 0 }}. This is more than the Alternative Simplified Credit, which would only be {{ calculate_alt_simplified_credit() | currency : USD : 0 }}.

You could claim the Alternative Simplified Credit for {{ calculate_alt_simplified_credit() | currency : USD : 0 }}. This is more than the Regular Credit, which would only be {{ calculate_regular_credit() | currency : USD : 0 }}.

You can claim either the Regular Credit or the Alternative Simplified Credit; either credit will be the same amount: {{ calculate_alt_simplified_credit() | currency : USD : 0 }}.

Claiming the credit will also reduce the company's deductions for the cost of your research (employee wages, etc.) by {{ get_higher_credit_amount() | currency : USD : 0 }}. Alternatively, you also have the option to reduce the credit by 35% to {{ get_higher_credit_amount() * 0.65 | currency : USD : 0 }}, but not affect the company's deductions at all. This is called "electing the reduced credit under section 280C."


What can the company apply the credit towards?

What are the company's Gross Receipts for this year?

The company can use this credit to reduce its corporate income tax, or to reduce the FICA taxes (6.2% Social Security and 1.45% Medicare taxes) that it pays on employee wages.

The company can use this credit to reduce its corporate income tax, even if the company pays the Alternative Minimum Tax (AMT).

The company can use this credit to reduce its corporate income tax.




Whether you're an accountant or a startup, RetroacDev can help your business

Privacy Policy ©2016-2018 Zagaran, Inc.