Credit Method Eligibility

Credit Method Eligibility

Year company started generating revenue

The IRS requires us to determine the year that revenue was first generated in order to qualify a taxpayer for the start up small business payroll tax offset. You will want to put in the earliest year you had any income on any tax return. This income includes gross sales, dividends, interest income, rental income, royalties, real estate, and "other income" line items on your return. If your first year of revenue was this year, feel free to indicate that with your selection.

Year company started it’s R&D efforts

The IRS requires us to determine the start date for development to qualify companies for the start-up small business payroll tax offset.

Revenue less or more than $5 Million in the study year

The IRS requires that taxpayers have a total annual revenue of less than $5M in order to qualify for the start-up small business payroll tax offset. If you are not under $5M in a particular tax year, you are limited to generating a regular tax offset. You should consult your CPA to determine your company's tax situation and ability to utilize the credit if your revenue exceeds $5M in the current year.

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