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Pre-revenue? Not paying income tax yet? Not a problem. Apply the credit to payroll taxes!
We’ve brought technology and 20+ years of R&D expertise together—so you capture the maximum credit with minimum effort.
In a few simple questions see if you qualify for the R&D tax credit and the potential amount of your credit.
Create qualifying R&D projects using our simple guidance of the 4-part test.
Automatically link your payroll and accounting software or manually enter your expenses and tag your R&D qualified expenses.
Leave the creation of the forms to us. We will send you completed forms and instructions that you or your accountant can file with your federal tax return.
Once we’re confident your credit is thorough and accurate, we’ll send you a complete filing package with everything your tax preparer needs to file and apply the credit.
Our fee is 2% of total qualifying R&D expenses we find and claim for you.
This is roughly 20% of the total tax credit you receive. Why do we charge based on your expenses and not your credit? According to the IRS, a fee based on inputs (your qualifying expenses) is ok, but a fee based on outcome (your credit amount) is dangerously close to a “contingent fee” which is expressly disallowed by IRS regulations.
Enacted in 1981 to encourage research and development (R&D) activities in the United States, the R&D tax credit reduces tax liability for organizations that perform certain activities to develop new or improved products, processes, software, techniques, formulas or inventions.
You can get about 10% back on qualifying expenses such as wages, contractor costs, cloud hosting and infrastructure, supplies, and legal costs.
Because of the broad definition for qualified activities, businesses from almost every industry have claimed R&D tax credits. If you have employees or contractors in the United States who spend any time developing new or improved products, processes, software, algorithms, formulas, or inventions, then you likely qualify for the R&D tax credit.
No. The criteria for qualified research activities and expenses is very broad, and certain types of companies (i.e. software, hardware, science, construction, beauty, startups, etc.) are extremely likely to qualify for at least some amount of credit.
Additionally, your projects do not need to succeed in order to qualify. Even if a project fails or is put on hold, you can still claim project expenses if they meet the criteria for qualified research.
You can claim the following expenses for qualified activities:
You can get about 10% back on qualifying expenses such as wages, contractor costs, hosting and infrastructure, and supplies.
The R&D credit can be applied against payroll taxes beginning the quarter after the credit is elected. For example, if you file for the credit in Q1, you will receive a credit to offset your payroll taxes beginning in Q2, and for every quarter until the credit has been fully consumed. However, the exact timing and method of payment depends on your payroll provider.
January 24th – 2022 Tax Season begins!
January 31st – Form 1099 –NEC (Nonemployee Compensation) is due for US Contractors. In general, the total on this form should match a qualified contractor’s pay included in the product.
January 31st – Last 2021 Quarterly Payroll Form 941 is due. (Form 8974 should be attached)
February 15th – Form 1099 MISC (Miscellaneous Income).
March 31st – Deadline for a customer to file (Form 1120) in order to receive Q2 R&D payroll offset.
April 18th – 2021 Form 1120 Corporate Tax Returns or a 6-mon. tax extension is due.
April 30th – First 2022 Quarterly Payroll Form 941 is due. (Form 8974 should be attached).
June 30th – Deadline for a customer to file (Form 1120) in order to receive Q3 R&D payroll offset.
July 31st – Q2 Payroll Form 941 is due. (Form 8974 should be attached).
September 30th – Deadline for a customer to file (Form 1120) in order to receive Q4 R&D payroll offset.
October 17th – Final deadline to file a timely Form 1120 Corporate Tax Return if an extension was filed by April 18th.
October 31st – Q3 Payroll Form 941 is due. (Form 8974 should be attached).
VP Finance, Pipe
"I hope at some point, you can do this for taxes. If you could take the data we have, and I could just click ‘file taxes’. That's my dream scenario."
"The process was fast and easy. The credit showed up in Gusto and was applied to our next payroll. Just like that, one more month of burn!"
"I was blown away by how easy neo.tax was. This was an enormous pain last year, even with the well-known firm that we used."
"We're not profitable, but Neo.Tax was able to refund our payroll taxes! That really helped extend our runway."