How R&D Tax Credits Help Companies like Amazon, Fedex and Nike Avoid Paying Federal Taxes.

R&D Tax Credits are the HIDDEN SECRET source of income for your company. Why didn't my CPA tell me about this? By reading this article you will understand why.

Innovation is the lifeblood of many startups and small businesses. But funding those crucial research and development (R&D) efforts can be a challenge. The good news? The R&D tax credit can help ease the financial burden and fuel further breakthroughs. This article addresses the most common questions surrounding this valuable tax credit.

Profitability Doesn't Hinder You: The R&D tax credit isn't limited to profitable businesses. Startups can still claim the credit even if they haven't turned a profit yet. There are two options available:

Closed Businesses Can Still Reap Benefits: Even if you've shut down your business, you may not be shut out of the R&D credit. Amending tax returns from profitable years (3 years back) with qualifying R&D expenses could result in a tax refund.

Maximizing Your Credit: The amount of credit you receive depends on several factors, including your qualified R&D expenses and historical spending patterns. There's no minimum expense requirement, but the payroll tax offset has a $250,000 annual limit. Specialists typically use two calculation methods to ensure you claim the maximum benefit allowed.

Get Your Money Faster: The R&D credit works by reducing your final tax liability. This means you don't have to wait for a separate refund if you file your return on time. Amending a return for a credit typically takes 6-9 months for processing.

Specialized Knowledge for Complex Credits: While CPAs have a broad range of tax expertise, the R&D credit requires in-depth knowledge of specific tax code sections. So, don't be surprised if your CPA recommends consulting a specialist to navigate the complexities of claiming the credit.

No Employees, No Problem: Don't think that only employee salaries qualify as R&D expenses. The credit encompasses a wider range of costs associated with innovation, including supplies, materials, outside contractors, and even cloud computing services.

Transparent Process, Transparent Pricing: The fees associated with claiming the R&D credit are typically a percentage of the generated credit amount (around 20-25%). But there's a catch – you only pay if you get a credit. The final deliverable you receive includes completed tax forms, summaries of qualified research expenses, an expense analysis report, and filing instructions.

By understanding these key points, you can unlock the potential of the R&D tax credit. Find out if you qualify in five minutes by going to rdtaxcreditrefunds.com and see if your company is eligible.

Disclaimer: Uncle Dan Evertsz (Uncle Dan Consulting Corp.) is not a CPA or Tax Attorney. I can only provide self-help education but do work with CPAs who are experts in providing an R&D Tax Credit Study. This article should not be considered legal advice but for educational purposes only.