Yes, profitability does not affect qualification. However, if you are not profitable, you either A) have to qualify as a small business start-up to apply the credit against your payroll taxes, or B) carryforward the credits until you have regular tax liability. The qualification for small business payroll tax offset is less than five (5) years of gross receipts history, and less than $5MM in gross receipts during the tax year in which the credit is being claimed.
Articles in this section
- My start-up is not profitable, do I still qualify for the R&D credit?
- How is the credit computed?
- How much money can I get back from the IRS?
- What happens if I can't utilize all my R&D tax credits?
- What type of deliverable will I receive?
- I don't have any employees, can I still claim the credit?
- Why hasn't my CPA told me about the R&D credit?
- How soon can I get my money after I claim the credit?
- What happens if I get audited?
- I took the Employee Retention Credit (ERC) does that matter?
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