Reduce your startup's payroll taxes through the new Federal R&D Tax Credit

Re:Reduce your startup's payroll taxes through the new Feder... by jhallenworld on Tuesday June 27, 2017 @03:15PM (#14648377)

What if I have R&D expenses in a side business- can I use the credit to offset my main job's income tax?

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Re:Reduce your startup's payroll taxes through the new Feder... by gamblor956 on Tuesday June 27, 2017 @04:55PM (#14649350)

No, the credit claimed for the side business can only offset income from the side business, and only if your side business is incorporated (but S corporations count).

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Re:Reduce your startup's payroll taxes through the new Feder... by uiri on Tuesday June 27, 2017 @03:49PM (#14648736)

I am not an accountant.

You may use a loss from a side business in order to offset W-2 income. No need for complicated tax credit forms. Look into the IRS rules around hobbies as they may get suspicious if your "business" loses money for years on end.

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Re:Reduce your startup's payroll taxes through the new Feder... by toomuchtodo on Tuesday June 27, 2017 @04:39PM (#14649195)

This is accurate (I take losses on an LLC occasionally against W2 income).

Regarding business vs hobby criteria: https://www.irs.gov/uac/business-or-hobby-answer-has-implica...

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Re:Reduce your startup's payroll taxes through the new Feder... by thephyber on Tuesday June 27, 2017 @03:19PM (#14648408)

Not an accountant, but the article states is applies against the business's social security taxes:

> Beginning in 2017, qualified small businesses may claim up to $250,000 per fiscal year, applying it against their Social Security taxes.

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Re:Reduce your startup's payroll taxes through the new Feder... by martinpannier on Tuesday June 27, 2017 @03:19PM (#14648417)

No, unfortunately you can't.

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