Tools for Startups / Tax Calculators

Startup Tax Credit Calculator

How much would my startup save with the R&D Tax Credit?

YOUR R&D EXPENSES

How much did you spend last year for product, process, or software development in the US?

Certain startup businesses may be eligible for up to $250,000 in payroll tax savings per year — and they may not even be aware of it.

The Credit for Increasing Research Activities is commonly referred to as the R&D Tax Credit. This popular government incentive was created to spur innovation and job growth within the United States. The R&D Tax Credit was first enacted in 1981 and made permanent through the PATH Act of 2015.

Your startup may be eligible to save hundreds of thousands of dollars per year in payroll tax costs with R&D Tax Credits.

Qualified Startup Research Expenses for the Tax Credit:

  1. Wages – paid to employees for qualified services. This includes amounts considered to be wages for federal income tax withholding purposes.
  2. Supplies – used and consumed in the R&D process. Supplies are defined as any tangible property other than land or improvements to land, and property subject to depreciation.
  3. Contract Research – expenses paid to a third party for performing QRAs on behalf of the taxpayer. Regardless of the success of the research, 65% of the actual cost incurred may be deductible.
  4. Cloud Computing – with the advent of cloud computing, software companies also often have shared computer rental expenses, portions of which can be included in the credit.

We Do the Work.
You Get the Credit (Up to $250,000/year)

  1. Burkland conducts an R&D tax credit analysis for your startup. We identify the total amount of qualifying R&D expenses you can claim on your federal tax return.
  2. Our startup tax accountants prepare and file the necessary tax paperwork and supporting documentation to claim your credit.
  3. We make sure your credit is correctly applied against your payroll taxes throughout the year.

Burkland startup tax accountants are experts in startup tax credits. We will help your startup identify potential tax savings, navigate complex federal and state regulations, organize documentation to support the credit and partner with your payroll provider to make sure your tax savings are processed efficiently.