In 2017, certain small businesses can now qualify for a research & development (R&D) tax credit of up to $250,000 per fiscal year against their employer Social Security tax liability. Partner with Gusto to help your clients claim this credit on their quarterly payroll filings.
Fast facts: The Federal R&D tax credit
- Big rebate for qualified businesses: The R&D tax credit provides a credit to offset a company’s Social Security tax liability. Generally, small businesses with fewer than $5M in gross receipts and who have five years or less of gross receipts can claim up to $250,000 in credit.
- Lucrative service offering for CPAs: Small businesses must conduct an audit to determine their eligibility. A form 6765 needs to be filed with the previous year’s corporate tax return in order to claim credits for the current year. Offer this as a service for your small business clients.
- Use Gusto to claim this credit: The credit is claimed on two quarterly forms, which Gusto automatically files: on the 941 as a line item and on a separate 8974 amendment.
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- Sign up and we’ll show you how to claim this credit with Gusto.