R&D Tax Credit
Review research activities and project records to assess potential R&D tax credits.
Online service across all 50 states
What this service is
The federal research credit (Section 41) rewards companies for developing or improving products, processes, software, formulas, or techniques. Work qualifies when it passes a four-part test: it has a business purpose, relies on engineering or science, involves real technical uncertainty, and resolves that uncertainty through experimentation. We find the qualifying projects, measure the wages, supplies, and contract research behind them, calculate the credit, document each project for Form 6765, and, for startups under $5 million in gross receipts, evaluate applying up to $500,000 a year of the credit against payroll taxes.
Forms & documents involved
What we actually do
Screen projects
Interview technical leaders and test each project against the four-part test.
Measure qualified expenses
Connect qualifying time to payroll, add eligible supplies, and include 65% of qualifying contract research.
Calculate the credit
Compare the regular credit with the alternative simplified credit and choose the better method.
Document each project
Record the goal, the uncertainty, the experiments, and the people involved to support Form 6765's project-level section.
Make the payroll tax election
For qualified small businesses, elect to apply the credit against payroll taxes and claim it through Form 8974 with Form 941.
Coordinate with Section 174A
Align the credit with how domestic research costs are deducted on the return.
Estimate your federal R&D credit
A quick screen using the alternative simplified method most small and mid-sized companies use. Enter annual figures for the year you want to test.
- Estimated qualified research expenses
- $320,000
- Calculation used
- 14% above 50% of prior average
- Payroll tax offset
- Not indicated
Estimate only. A CPA will confirm what applies to you.
Talk through my projects with a CPAWork that often qualifies
- Building new software features, platforms, or integrations
- Designing and testing prototypes or new products
- Improving manufacturing processes, tooling, or yield
- Developing new formulas, recipes, or materials
- Engineering custom solutions for a client project
- Testing alternatives to solve a technical problem
Prices by scope
Compare the work included at each price. Your final scope and fee are confirmed in writing before work begins.
Scales with qualifying wage and expense volume.
- SmallUnder $500K qualified expenses$1,680
- Mid-size$500K–$2M qualified expenses$3,480
- LargeOver $2M or multiple business componentsFrom $5,800
For companies with an existing documentation process.
- Existing documentationSame projects, updated wages and expenses$1,180
- New projects addedNew business components documented$2,280
What You Get
Qualification Review
Testing each project against the four-part test: a permitted purpose, technological in nature, elimination of uncertainty, and a process of experimentation.
Qualified Research Expense Calculation
Measuring qualifying wages, supplies, and contract research, and comparing the regular credit with the alternative simplified credit.
Project Documentation
Building contemporaneous project records, goals, uncertainties, experiments, and people involved, that support the claim and Form 6765's project-level reporting.
Payroll Tax Offset Election
Evaluating and making the qualified small business election to apply the credit against payroll taxes, then coordinating it with Form 941 filings.
Section 174A Coordination
Coordinating the credit with how domestic research and experimental costs are deducted under Section 174A for the year.
- Qualified research expense calculation workbook
- Project-level documentation summaries
- Completed Form 6765 for the return
- Payroll tax election and Form 8974 coordination where applicable
When this service may fit
- Your team designs, develops, or tests new or improved products, processes, or software
- You have engineering or technical wages but have never claimed the credit
- You are a startup with under $5 million in gross receipts paying payroll taxes
- You need to understand how Section 174A expensing affects your return
Often handled together
Clients who use this service often add these. Tick any to see the combined starting price.
How It Works
Activity and project screening
Interview technical leaders to list projects and screen each one against the four-part test for qualified research.
Wage, supply, and contractor data collection
Collect payroll, contractor, and supply records and connect qualifying time and costs to the projects that passed screening.
Credit calculation and documentation
Calculate the credit under the available methods, document each project, and prepare Form 6765 with the related elections.
Return, election, and payroll coordination
Coordinate the claim with the income tax return, Section 174A treatment, and any payroll tax election filed with Form 941.
Your Role
Provide access to technical staff, payroll and contractor records, and project documentation, and confirm the accuracy of time estimates.
Service Scope
Credit study and return reporting for the agreed years. Exam defense, state credits, and amended returns for additional years are separately scoped; no credit amount is assured.
Start R&D Tax Credit online
Choose the closest scope and send your request online. We’ll confirm the final work and fee in writing before anything begins.
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