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Optimizing the tax process so you can do taxes smarter, not harder.

Neo.Tax is streamlining and automating the manual parts of taxes without compromising accuracy or compliance.

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Using Neo.Tax Unlocks Massive Upside

Increase Efficiency

Using Neo.Tax you can produce your client's R&D credit in a significantly reduced time, without compromising accuracy or compliance.

Acquire New Customers

Neo.Tax partners have access to a new customer acquisition source — our referral network of startups and small businesses.

New Revenue Stream

With Neo.Tax you will be introducing a new revenue source, while increasing efficiency and freeing up more billable hours for high value work.

Your Benefits

You are tracking down so much information from your clients. Processes that can be streamlined and automated shouldn't use up your billable hours. Neo.Tax can help you provide true saving to your clients by making tax credits easily accessible. Create lifetime customers by educating them about tax savings, while reducing your risk of missing credits they are entitled to.

Your Client's Benefits

Accountants and Bookkeepers are always seen as a necessity and expense. Until now. Using Neo.Tax, what you can save your clients in tax credits can significantly offset your fees, making your services profitable for your clients. You are educating them that they could qualify for to up to 10% of qualified R&D expenses back into their business — that is up to $250,000 back a year, for up to 5 years ($1.25m)!

Key Features

Trusted

Always in lockstep with the IRS and current tax codes while delivering best-in-class tax documentation and optimized tax filing.

Accurate

Neo.Tax uses IRS methodologies to calculate R&D Tax Credits and includes internal checks and balances throughout the claim process.

Fast

Easily share with your clients to see if they are eligible. Neo.Tax uses built in integrations to most payroll and accounting software with manual uploads available.

Simple

Streamlines the unnecessary manual steps previously required. Neo.Tax walks you through every step and does all of the hard work for you.

Flexible

Fully automated self-service solution with step-by-step guides, backed by friendly white glove support by our team of tax experts.

Secure

Security is built into every line of Neo.Tax code, while maintaining complete compliance with the IRS.

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Meet with our Taxperts

Book a demo and see how Neo.Tax can help you and your firm save millions for your clients. Complete a demo and be entered into a weekly drawing for a $100 Amazon Gift Card.

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Create an Account

Set up a free Neo.Tax account and look around our product on your own. If you have questions at any time, reach out to our live support or email accountants@neo.tax

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Frequently Asked Questions

How much do you charge?

Neo.Tax offers transparent and below marketing pricing for our partners. We don't charge upfront or exorbitant fees and only charge you when we find money for your clients. Book a time with our accountant success team to learn more.

What is the payroll R&D Credit?

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.

Because of the broad definition for qualified activities, businesses from almost every industry have claimed R&D tax credits. A business can get about 10% back on qualifying expenses such as wages, contractor costs, cloud hosting and infrastructure, supplies, and legal costs.Partner quote from current website

What is the difference between the payroll R&D Credit and the regular R&D Credit?

The R&D tax credit is available to companies developing new or improved business components, including products, processes, computer software, techniques, formulas or inventions, that result in new or improved functionality, performance, reliability, or quality. It’s available at the federal and state level, with over 30 states offering a credit to offset state tax liability.

It’s a dollar-for-dollar tax savings that directly reduces a company’s tax liability. There’s no limitation on the amount of expenses and credit that can be claimed each year. If the federal R&D credit can’t be used immediately or completely, then any unused credit can be carried back one year or carried forward for up to 20 years. Each state has its own carryover rules.

The R&D tax credit regularly provides a wide range of businesses with a source of extra cash—up to 10% of annual R&D costs for federal purposes and much more when state credits are factored in.

The R&D Payroll Credit was created by The Protecting Americans from Tax Hikes (PATH) Act of 2015, which made the R&D credit permanent and expanded its application to create a potential tax benefit for small businesses and start-up companies.

Start-up companies and small businesses may be eligible to apply up to $1.25 million—or $250,000 each year for up to five years—of the federal R&D credit to offset the Federal Insurance Contributions Act (FICA) portion of their payroll taxes each year.

To be eligible, a company must meet two requirements:

  • Have less than $5 million in gross receipts for the credit year
  • Have no gross receipts or interest income dating back more than five years

The R&D credit is calculated on the federal income tax return as usual and may be applied against payroll taxes starting the quarter after the credit is elected. For calendar-year taxpayers, the R&D credit can be applied against payroll taxes as early as April of the following year.

What qualifies for this credit?

The payroll-tax offset allows companies to receive a benefit for research activities even if they aren’t profitable.

To be eligible for the credit, companies must meet the following qualifications:

  1. Have gross receipts for five years or fewer—interest income counts toward gross receipts
  2. Accumulate less than $5 million in gross receipts in the year the credit is elected
  3. Conduct qualifying research activities and expenditures
  4. Determine they have payroll-tax liability

Regardless of industry, companies are potentially eligible for the R&D credit if their activities meet the following requirements, known as the four-part test:

  1. Technical uncertainty. The activity is performed to eliminate technical uncertainty about the development or improvement of a product or process, which includes computer software, techniques, formulas, and inventions.
  2. Process of experimentation. The activities include some process of experimentation undertaken to eliminate or resolve a technical uncertainty. This process involves an evaluation of alternative solutions or approaches and is performed through modeling, simulation, systematic trial and error, or other methods.
  3. Technological in nature. The process of experimentation relies on the hard sciences, such as engineering, physics, chemistry, biology, or computer science.
  4. Qualified purpose. The purpose of the activity must be to create a new or improved product or process, including computer software, that results in increased performance, function, reliability, or quality.

When should I apply for the credit on my client’s behalf?

The payroll-tax offset is currently available for qualified expenses incurred during the prior tax year. The R&D credit must be calculated and shown on a taxpayer’s federal income tax return with the portion of the credit applied to offset payroll taxes identified and elected when the return is filed.

The offset is then available on a quarterly basis beginning in the first calendar quarter after a taxpayer files their federal income tax return.

How quickly can my client get their credit?

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, your client will receive a credit to offset their 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 client’s payroll provider.

How will they receive the payments from the credit?

This is dependent on your client’s payroll provider. Please check with their payroll provider to confirm how the R&D tax credit will be refunded.

Benjamins? Please. Neo.Tax is all about the Clevelands.

Let us help you save your clients serious money. We'll tell you which ones can leverage the R&D Tax Credit. Then show you how fast, painless and simple the Neo.Tax claims process is.
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