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How to File Your Form 8974: Gusto

How to File Your Form 8974 with Gusto

Summary:

  • The IRS requires that you file Form 8974 the quarter after you file your income tax return with Form 6765 attached.
  • Gusto requires an accountant’s assistance to set up Form 8974.
  • Gusto requires that you submit the necessary information by the 15th of the last month of the quarter.
  • For a $100 monthly fee, Gusto allows you to receive the benefits of the credit immediately.
  • Some of the information below is sourced from Gusto and may not reflect Gusto’s latest changes.

Steps:

  • Sign into your Partner Dashboard (only accountants have access to this)
  • Go to the Clients section
  • Click the Actions menu on the far right
  • Click the Federal R&D credit
  • Select the type of business income tax return this company uses
  • Select the Fiscal Tax Year this company uses
  • Enter the date this company filed their tax return
  • If this company filed under a different Federal EIN at any point in their corporate tax year, the previous Federal EIN is required for the Federal R&D Credit filing
  • Enter the total Federal R&D credit claimed — this amount can be found on line 44 of Form 6765
  • Click Save & Continue
  • Select whether or not this company has claimed part of this credit on a Form 941 this fiscal year or not
  • If this company claimed the credit in any prior quarters, please enter these values so Gusto may determine their remaining Federal R&D Credit
  • Click Save & Continue
  • Review the information to make sure everything is accurate
  • Once you are ready, click File Tax Credit
  • Determine if you’d like this credit to be taken quarterly (free), or in real time

For $99 per month, you can receive the credit in real time by asking Gusto to stop withholding employer payroll taxes until the credit is fully consumed. If you would like to do this, follow these steps after completing all the steps above:

  • Go to the Settings section of your admin account.
  • Click the Preferences tab
  • Next to "Real Time Federal R&D Tax Credit," click edit
  • Click Enabled
  • Click Save